Tata Technologies fixes price band for IPO that opens next week: Check details

The most-awaited initial public offering (IPO) of the year, the public issue by Tata Technologies, is all set to open for subscription next week. This IPO will be the first from the Tata Group in nearly two decades. The company has unveiled its price band for the issue, along with other key details. Take a look -

Tata Technologies IPO: Price band

The price band has been fixed at Rs 475–Rs 500 per share.

In the past 1 month, the company’s valuation has risen sharply between 18-25 per cent i.e. by Rs 3000-4000 crore. Last month, promoter company Tata Motors divested 9 per cent equity in the company to TPG Rise Climate SF at a price of Rs 401.81 per share, aggregating Rs 1467 crore. Now, given the price band which is pegged in the range of Rs 475-500, the company’s valuations have scaled to Rs 19,200-20,300 crore.

Tata Technologies IPO: Other key details

The issue will open on November 22 and conclude on November 24. At the upper end of the price band, the product development and digital solutions company aims to aggregate around Rs 30,42.51 crore.

The complete offer for sale (OFS) of up to 60,850,278 shares will see a stake sale by Tata Motors, which will offload up to 46,275,000 equity shares. Besides, Alpha TC Holdings will dilute 9,716,853 shares, and Tata Capital Growth Fund I will offload 4,858,425 equity shares.

For the retail category, 35 per cent of the IPO quota is reserved. They can make bids for a minimum of 30 equity shares and in multiples of 30 shares thereafter for a minimum amount of Rs 15,000. Small HNIs can make bids for a minimum of Rs 2.1 lakhs, while big HNIs can make a minimum application for Rs 10.05 lakhs.

JM Financial, Citigroup Global Markets India, and BofA Securities India are the book-running lead managers (BRLM) to the IPO, while the registrar is Link Intime India Private Limited.

Here is the indicative schedule for the post-IPO process

Allotment of shares as part of the IPO: November 30

IPO listing: December 5

About the company

Tata Technologies offers product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their Tier 1 suppliers.