Tata Technologies Ltd. has had a spectacular listing in the stock market. The company’s shares are listed on NSE at Rs 1200 per share with a premium of 140%, while on BSE it is listed at Rs 1199.95 per share with a premium of 139.99%. Its issue price was Rs 500 per share.
The issue received a bumper response
How much craze there was among the investors regarding Tata Technology’s IPO can be understood from the fact that it was fully subscribed in just 36 minutes on its very first day. Tata Tech’s IPO closed on its last day with a record subscription of 69.43 times. This is the first IPO of Tata Group in almost two decades.
The total bidding value of this IPO, which was completely ‘Offer for Sale (OFS)’, was Rs 1.56 lakh crore. This issue was subscribed 203 times in the category of QIBs i.e. Qualified Institutional Investors. The share of non-institutional investors was subscribed 62 times, the share of retail was subscribed 16.50 times, the share of employees was subscribed 3.70 times and the share of Tata Motors shareholders was subscribed 29 times.
Tata Technologies IPO subscription
- Overall subscription: 69.43 times
- QIB Subscription: 203.41 times
- NII Subscription: 62.11 times
- Retail subscription: 16.50 times
- Employee Subscription: 3.70 times
- Shareholders’ subscription: 29.19 times
What is the business model of the company?
Tata Technologies, established in 1994, is a global engineering services company, which provides product development and digital solutions. The company primarily focuses on the automotive industry.
The company is associated with 7 of the top 10 automotive ER&D investors. Also, the company works with 5 out of the top 10 investors in New Energy ER&D.
The company operates two types of businesses:
1) Services: The company provides outsourced engineering services and digital transformation services to global manufacturing clients to help them deliver better designed products. The services line generated revenues of Rs 3,521 crore and Rs 1,986 crore in FY23 and H1 FY24, respectively.
2) Technology Solutions: This also has two parts:
Through its product business, Tata Technologies sells third-party software applications, which primarily include product life-cycle management software and solutions. Apart from this, the company also provides value added services like consulting, implementation, system integration and support.
Through its education business, the company provides ‘Phygital’ education solutions in manufacturing skills. Under this, public and private sector employees are made skilled in the latest engineering and manufacturing technologies through the iGetIT platform.
The Technology Solutions segment contributed Rs 883 crore and Rs 540.3 crore to the company’s income in FY23 and H1 FY24.
