Tata Technologies’ IPO receives strong response in grey market
Tata Technologies, the Tata Group’s company, is set to go public and the grey market has shown a strong response to its initial public offering (IPO). The grey market premium for Tata Technologies’ IPO is around ₹80-₹82, which means that the listing of its shares could be priced higher than the actual value. However, the company has not yet announced the issue price for this IPO.
IPO launch expected this year
Tata Technologies had filed its documents with the Securities and Exchange Board of India (SEBI) in March for its IPO offer for sale (OFS) as per the draft red herring prospectus (DRHP). Existing shareholders, including Tata Motors, Alpha TC Holdings Pte, and Tata Capital Growth Fund-I, will reduce their stake in the company through this IPO. The IPO is expected to launch this year, and Tata Motors will sell 8.11 crore shares, while Alpha TC Holdings Pte plans to sell 97.16 lakh shares and Tata Capital Growth Fund-I will sell 48.58 lakh shares.
Shareholding details
Tata Motors currently holds a 74.69% stake in Tata Technologies, while Alpha TC Holdings Pte has a 7.26% stake. The OFS includes 9.57 crore shares at a face value of ₹2. The company has yet to announce the IPO price and dates.
Lead managers for the IPO are JM Financial, Citigroup Global Markets India, and BOFA Securities India. In FY22, Tata Technologies had a net profit of ₹436.99 crore on total revenue of ₹3,578.38 crore. For the April-December period of FY23, the net profit was ₹407.47 crore, and revenue was ₹3,052.30 crore during this period.
The IPO is expected to attract significant investor interest as Tata Technologies is a well-established company in the automotive and aerospace industries, among others.
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