Tata Group, one of India’s leading conglomerates, is gearing up for a significant milestone as one of its subsidiaries, Tata Tech, prepares to go public after a gap of 19 years.
This announcement has generated considerable excitement in the market, reminiscent of the last IPO from the Tata Group when Tata Consultancy Services (TCS) made its market debut in August 2004, following its IPO in July of the same year.
Now, nearly two decades later, Tata Tech is poised to bring its IPO to the market.
Gray Market Scenario:
As per IPOWatch, Tata Tech shares are currently trading at a premium of Rs 100 in the gray market.
However, financial experts advise potential investors to base their investment decisions on the company’s financials and fundamentals, rather than relying solely on signals from the gray market.
Tata Tech IPO Details:
Tata Tech’s IPO will consist entirely of an Offer for Sale (OFS), with no plans for issuing new shares.
The OFS window will involve the sale of 9,57,08,984 equity shares with a face value of Rs 2 each, equivalent to 23.60% of the company’s shareholding.
Tata Motors intends to sell 8,13,33,706 shares, while Alpha TC Holdings and Tata Capital Growth Fund 1 will sell 97.16 lakh and 48.58 lakh shares, respectively.
The subscription period, price band, and lot size for the IPO are yet to be determined.
The issue will reserve 50% for Qualified Institutional Investors (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for retail investors. Upon successful completion of the IPO, Tata Tech shares will be listed on both the BSE and NSE.
Company Overview:
Tata Tech is a globally recognized engineering services company that offers comprehensive solutions, including product development and digital services, to Original Equipment Manufacturers (OEMs) worldwide.
Serving industries such as aerospace, transportation, and heavy machinery in construction, the company has established itself as a leader since its inception in 1994.
Tata Motors holds a majority stake in Tata Tech, with a 74.69% shareholding.
