Verify the share allotment and listing dates, as well as the gray market premium, for the Tata Technologies IPO

 Verify the share allotment and listing dates, as well as the gray market premium, for the Tata Technologies IPO

Tata Technologies IPO: By November 28, the business should have finalized the rules governing the distribution of IPO shares.

The sale of Tata Technologies' IPO shares is anticipated to occur on November 28.

All eyes will be on Tata Technologies, a Tata Motors company, to allocate shares after the stellar response to the IPO last week from investors in every category. By November 28, the business is anticipated to have finalized the basis for sharing IPO shares.

During November 22–24, the Tata Group's first initial public offering (IPO) in almost 19 years was subscribed 69.4 times, with investors purchasing 312.65 crore equity shares against the offer of 4.5 crore shares. In three days, they placed bids for shares totaling Rs 1.56 lakh crore.

High net worth individuals and qualified institutional buyers were among them, showing aggressive behavior as they bought 203.41 and 62.11 times their allocated quotas, respectively, while the portion reserved for retail investors, Tata Technologies employees, and Tata Motors shareholders was bought 16.50, subscribed 3.7 times, and 29.2 times.

Through a public offering priced at the highest limit of Rs 500 per share, the global engineering services firm has collected Rs 3,042.51 crore. Alpha TC Holdings, Tata Capital Growth Fund I, and Tata Motors, the lone promoter, are the investors in the initial public offering (IPO).

The offer's price range was between Rs 475 and Rs 500 per share.

To read the most recent IPO news, click this link.

By following three simple procedures, investors may monitor the progress of share allocation on the BSE website or the IPO Registrar's webpage (link in Time India).

To access the BSE website, investors need to undertake the following steps: a) choose "Equity" and "Issue Name" (Tata Technologies Limited) from the dropdown menu; b) input their PAN or application number; c) check the "I am not a robot" box; and lastly, click the "Search" button.

The steps to complete the IPO Registrar Portal are as follows: a) Choose "Tata Technologies Limited - IPO" from the dropdown menu; b) Choose and input the appropriate "PAN Number," "Application Number," or "DP Client ID"; and c) click "Finally." press the search button.

By November 29, the equity shares should be credited to the demat accounts of the successful investors. On November 30, the much-anticipated share trading is probably going to start on the BSE and NSE. Please note that these are just estimates and might vary.

Its IPO shares seem to be receiving positive feedback on the gray market as well. In actuality, the premium has gone up by around 10% during the last three sessions. The shares were trading on the gray market for an 80 per cent premium above the Rs 500 issue price at the time this story was written. It was offered for subscription at a 70% premium over the original IPO price.

IPO shares may be purchased and sold in the gray market, an unofficial marketplace, up to listing. Although the gray market premium does not address the company's fundamentals, participants often use it to determine the projected listing price of any initial public offering (IPO).

The primary drivers of the high listing expectations may be the robust demand for a Tata group firm, which is shown by the membership numbers, good parentage, robust financials, appealing valuations, and anticipated development prospects in the engineering services industry.

Tata Technologies' shares were trading at a P/E of 32.5x on an FY23 financial basis, less than those of its competitors Tata Elxsi (69.6x), L&T Technology Services (41.2x), and KPIT Technologies (105.6x).

Financially speaking, the Pune-based product development and digital solutions firm saw a 62% increase in profit after taxes and a 36% compound annual growth rate in sales between FY21 and FY23, with the services sector leading the way. expanded at a compound annual growth rate (CAGR) and EBITDA (earnings before profits). Strong operational leverage was the primary driver of the CAGR of 62% growth in interest, taxes, depreciation, and amortization over the same time period.

Even its margin performance was excellent, growing by 410 bps in profit margin and 240 bps in EBITDA margin between FY21 and FY23.