Tata Technologies Limited IPO (Tata Technologies IPO) Detail
IPO of Tata Technologies is book-built at Rs 3,042.51 crores. 6.09 crore shares are being offered for sale in the issue.The Tata Technologies IPO will open for subscriptions on November 22, 2023, and close on November 24, 2023.
Tata Technologies IPO Details
| IPO Date | November 22, 2023, to November 24, 2023 |
| Listing Date | December 5, 2023 |
| Face Value | ₹2 per share |
| Price Band | ₹475 to ₹500 per share |
| Lot Size | 30 Shares |
| Total Issue Size | 60,850,278 shares (aggregating up to ₹3,042.51 Cr) |
| Offer for Sale | 60,850,278 shares of ₹2 (aggregating up to ₹3,042.51 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 405,668,530 |
| Share holding post issue | 405,668,530 |
Tata Technologies IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Tata Technologies IPO Timeline
Tata Technologies IPO opens on November 22, 2023, and closes on November 24, 2023.
| IPO Open Date | Wednesday, November 22, 2023 |
| IPO Close Date | Friday, November 24, 2023 |
| Basis of Allotment | Thursday, November 30, 2023 |
| Initiation of Refunds | Friday, December 1, 2023 |
| Credit of Shares to Demat | Monday, December 4, 2023 |
| Listing Date | Tuesday, December 5, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on November 24, 2023 |
Tata Technologies IPO Lot Size
Investors can bid for a minimum of 30 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 30 | ₹15,000 |
| Retail (Max) | 13 | 390 | ₹195,000 |
| S-HNI (Min) | 14 | 420 | ₹210,000 |
| S-HNI (Max) | 66 | 1,980 | ₹990,000 |
| B-HNI (Min) | 67 | 2,010 | ₹1,005,000 |
Tata Technologies IPO Promoter Holding
Tata Motors Limited is the Promoter of the company.
| Share Holding Pre Issue | 66.79% |
| Share Holding Post Issue | 55.39% |
About Tata Technologies Limited
Incorporated in 1994, Tata Technologies Limited is a leading global engineering services company. They offer product development and digital solutions. This includes turnkey solutions, to global original equipment manufacturers (OEMs) and their tier-1 suppliers.
Tata Technologies aspire to create value for their customers by assisting them in the development of products that are safer, cleaner and improve the quality of life for the end customers.
With their deep domain expertise in the automotive industry, they have gained high expertise to serve clients in adjacent industries also, such as aerospace and transportation and heavy construction machinery.
The operation of Tata Technologies Limited is spread globally. They bring together diverse teams from different parts of the world with varied skill sets to collaborate in real time and solve complex engineering problems.
Tata Technologies Limited Financial Information (Restated Consolidated)
Tata Technologies Limited’s revenue increased by 25.81% and profit after tax (PAT) rose by 42.8% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 5,142.42 | 5,201.49 | 4,218.00 | 3,572.74 |
| Revenue | 2,587.42 | 4,501.93 | 3,578.38 | 2,425.74 |
| Profit After Tax | 351.90 | 624.04 | 436.99 | 239.17 |
| Net Worth | 2,853.13 | 2,989.47 | 2,280.16 | 2,142.15 |
| Reserves and Surplus | 2,455.29 | 2,605.60 | 2,028.93 | 1,897.46 |
| Total Borrowing | ||||
| Amount in ₹ Crore | ||||
Tata Technologies Key Performance Indicator
Tata Technologies IPO Market Cap is Rs 20283.43 Cr and P/E (x) is 32.53.
| KPI | Values |
| P/E (x) | 32.53 |
| Market Cap (₹ Cr.) | 20283.43 |
| EPS (Rs) | 15.37 |
| RoNW | 20.87% |
Tata Technologies IPO Peer Comparison
| Company | Tata Technologies | Tata Elxsi | LTTS | KPIT | CYIENT | |||||
| Rs in Cr | FY23 | TTM | FY23 | TTM | FY23 | TTM | FY23 | TTM | FY23 | TTM |
| Revenue | 4414.2 | 5053.0 | 3144.7 | 3388.0 | 8014.0 | 9107.0 | 3365.0 | 4231.0 | 6015.9 | 6833.0 |
| EBITDA | 820.9 | 912.6 | 961.3 | 1012.0 | 1711.0 | 1850.0 | 632.9 | 806.0 | 1003.0 | 1247.0 |
| PAT | 624.0 | 716.9 | 755.2 | 785.0 | 1174.0 | 1274.0 | 381.0 | 491.0 | 514.4 | 672.0 |
| Growth-% | ||||||||||
| Revenue | 25.1 | NA | 27.3 | 20.7 | 22.0 | 17.8 | 38.3 | 56.4 | 32.7 | 36.4 |
| EBITDA | 27.1 | NA | 25.5 | 12.8 | 20.9 | 16.2 | 44.3 | 59.0 | 22.6 | 51.7 |
| PAT | 42.8 | NA | 37.4 | 17.3 | 26.7 | 19.6 | 38.9 | 52.0 | -1.5 | 39.7 |
| Margin-% | ||||||||||
| EBITDA | 18.6 | 18.1 | 30.6 | 29.9 | 21.4 | 20.3 | 18.8 | 19.0 | 16.7 | 18.2 |
| PAT | 14.1 | 14.2 | 24.0 | 23.2 | 14.6 | 14.0 | 11.3 | 11.6 | 8.6 | 9.8 |
| Per Share-Rs | ||||||||||
| EPS | 15.4 | 17.7 | 121.3 | 126.1 | 114.7 | 197.8 | 13.9 | 17.9 | 47.9 | 62.6 |
| BVPS | 73.7 | 70.3 | 334.8 | 336.6 | 419.6 | 453.2 | 60.3 | 67.8 | 322.8 | 376.0 |
| RoE-% | 20.9 | 25.1 | 36.2 | 37.5 | 26.5 | 26.6 | 23.1 | 26.4 | 14.8 | 16.6 |
| P/E-x | 32.5 | 28.3 | 69.3 | 66.6 | 40.0 | 36.8 | 106.2 | 82.4 | 37.0 | 28.3 |
Tata IPO Launch and Grey Market Premium
The Tata Technologies IPO will take place on November 22, 2023. It will offer for sale up to 3,042.51 crores of securities each amounting to ₹2 each. Tata Technologies Limited is part of the Tata Group of companies. It provides engineering and design services, product lifecycle management, manufacturing, product development, and IT service management. Their clients include original equipment manufacturers and their suppliers in the automotive and aerospace industries. In North America, Europe, the Middle East, and Asia Pacific, they are active. The Fortune India Infotech Industry ranking ranks Tata Technologies 15th. Over 11000 employees and around 4000 professionals work for them across 25 countries. Pune is the company’s headquarters, and regional offices are in the United States. Equity shares will be priced between 475 and 500 in the IPO. NSE and BSE will list Tata Technologies’ IPO. Current GMP of Tata Technologies IPO is 380rs.
Should you invest in Tata Technologies IPO? Pros and cons to consider
When considering investing in an IPO, it is important to carefully weigh the pros and cons before making a decision. This is especially true for the much-anticipated Tata Technologies IPO, which has generated a lot of buzz in the market. In this section, we will discuss the potential benefits and risks of investing in this IPO.
Pros of Tata Technology IPO
- Strong Brand Reputation: Tata Technologies is a subsidiary of the renowned Tata Group, known for its long-standing presence and credibility in various industries. This gives investors confidence in the company’s stability and growth potential.
- Industry Leader: The company is a global leader in engineering services and digital solutions, with a strong focus on innovation and technology. With its diverse portfolio of clients from different sectors such as automotive, aerospace, and industrial machinery, Tata Technologies has established itself as a key player in the market.
- Promising Financial Performance: According to their Draft Red Herring Prospectus (DRHP), Tata Technologies’ revenue has grown at a CAGR (Compound Annual Growth Rate) of 14% over the last three fiscal years (FY18-20). Moreover, its profit after tax has also shown consistent growth during this period.
- Potential for Expansion: The funds raised through this IPO will be utilized to fund expansion plans such as acquisitions and strategic partnerships that could further boost the company’s growth prospects.
Cons of Tata Technology IPO
- Dependence on Auto Sector: A significant portion of Tata Technologies’ revenue comes from clients in the automotive sector, which makes it vulnerable