In a remarkable turn of events, Tata Tech marked its successful entry into the domestic market after almost two decades, following in the footsteps of TCS’s listing in 2004.
Despite being an offer for sale issue, Tata Tech’s IPO garnered significant investor interest, witnessing an overall subscription of more than 69 times.
The impressive debut on the BSE, with a listing gain of 140%, signals a renewed wave of enthusiasm for Tata in the capital market.
Listing Day Triumph:
Tata Tech’s IPO, valued at ₹3,042.51 crores, witnessed a record-breaking 73.58 lakh applications during its subscription period from November 22 to 24.
This outstanding response surpassed the previous record held by LIC, setting a new benchmark for investor interest in IPOs.
The subscription numbers were robust across categories, with Qualified Institutional Buyers (QIB) leading at 203.41 times, followed by Non-Institutional Investors (NII) at 62.11 times, retail investors at 16.50 times, employees at 3.70 times, and Tata Motors shareholders at 29.20 times.
Listing Gain Delight:
Tata Tech’s shares, issued at ₹500 under the IPO, made a grand entry on the BSE at ₹1199.95, providing IPO investors with a substantial listing gain of 139.99%.
The momentum continued post-listing, with the share price surging to ₹1398.00, translating to a remarkable profit of 179.6% for IPO investors.
About Tata Tech:
Tata Tech, the global engineering services arm of Tata Motors, specializes in offering product development and digital solutions to global Original Equipment Manufacturers (OEMs).
Its diverse client base spans industries such as aerospace, transportation, and heavy machinery.
Financially robust, Tata Tech’s net profit showed a positive trajectory from Rs 2.39 crore in FY 2021 to Rs 6.24 crore in FY 2023.
The company’s revenue mirrored this growth, escalating from Rs 24.26 crore in FY 2021 to Rs 45.01 crore in FY 2023.
The success of Tata Tech’s IPO underscores investor confidence in the company’s growth prospects and the broader market’s appetite for quality offerings.
