New Delhi: Shares of Tata Technologies, a subsidiary of Tata Motors, made a stellar stock market debut on Thursday. The stock was listed at a blockbuster premium of 140 per cent over its IPO price band. The stock started trading at Rs 1,200 on NSE and Rs 1,199.95 on BSE, against the issue of Rs 500. The shares were listed on BSE with a jump of 139.99 per cent from the IPO price. It further zoomed 180 per cent to Rs 1,400.
Tata Technologies is a subsidiary of automobile major Tata Motors and is a pure-play manufacturing-focused Engineering Research & Development (ER&D) company, primarily focused on the automotive industry. The issue was open for bidding between November 22 and November 24.
IPO received 69.43 times subscription
The price range for the Tata Technology IPO was set at Rs 475-500 per share, making it a Rs 3,042.52 crore IPO. The IPO garnered significant support from investors, with a subscription rate of 69.43 times. The qualified institutional buyers (QIBs) category saw an exceptional subscription of 203.41 times, setting a record. The reserved allotment for Tata Motors shareholders and eligible employees was subscribed 29.20 times and 3.70 times, respectively, during the bidding process.
First IPO after 19 years
Tata Technology’s IPO marked the first public offering by a Tata group company in nearly two decades. The last IPO by any group company was Tata Consultancy Services (TCS) in 2004. In the half-year ending September 2023, Tata Technology reported a 35% year-on-year increase in total income to Rs 2,587 crore, while net profit rose by 36% to Rs 352 crore during the same period.
The IPO of Tata Technologies was fully subscribed within minutes of opening for bidding on Wednesday last week. The public issue had a price band of Rs 475-500 per share. Tata Technologies’ public issue was entirely an Offer For Sale (OFS) of 6.08 crore equity shares.
In the equity market, the 30-share BSE Sensex traded 216.34 points lower at 66,685.57 while the Nifty declined 40.55 points at 20,055.45.
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