Tata Technologies IPO Day 3: Check Subscription Status, GMP and other Details (Should you Buy?)

Tata Technologies IPO: The Tata Technologies Ltd IPO, which is the first public offering from the Tata Group in nearly twenty years, has received a tremendous response from investors.

The IPO, open for subscription since November 22, is set to close today, November 24.

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The interest in Tata Technologies IPO is exceptionally high, with a record number of applications pouring in.

The company, a subsidiary of Tata Motors, specializes in manufacturing-focused Engineering Research & Development (ER&D), mainly concentrated in the automotive sector.

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Let’s take a look at the subscription status of Tata Technologies IPO, the Grey Market Premium (GMP), and other important details.

Subscription Status:

As of the third and final day, Tata Technologies IPO has been subscribed 18.77 times.

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This means that investors have applied for 84.50 crore equity shares, surpassing the 4.50 crore shares offered.

In specific categories, the retail category saw a subscription of 12.88 times, Qualified Institutional Buyers (QIB) category 13.68 times, and Non-Institutional Investors (NII) category a substantial 39.92 times.

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Tata Technologies IPO has set a new record for the highest number of applications among private sector companies, surpassing major names like Zomato, Reliance Power, FSN E-Commerce Ventures (Nykaa), and others.

Grey Market Premium (GMP) Today:

The Grey Market Premium for Tata Technologies IPO has risen to ₹405 per share, indicating an 81% increase over the issue price.


This means that in the grey market, Tata Technologies shares are trading at ₹905 apiece, compared to the issue price of ₹500 per share.

Considering the GMP today and the issue price, it’s estimated that Tata Technologies shares could be listed at ₹905 apiece on the stock exchanges.


Analyst Recommendations:

Analysts are generally positive about subscribing to Tata Technologies IPO, citing the company’s improving financials, strong brand reputation, and reasonable valuations.

The company’s sales have grown by 15.7% over FY20-23, reaching ₹4,414 crore in FY23, with improved EBit margins.

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Brokerage firm Nirmal Bang recommends subscribing to the issue, highlighting the attractive valuation at the upper price band of ₹500.

SBI Securities sees Tata Technologies well-positioned to capitalize on growth opportunities in the ER&D space and recommends subscribing due to relatively cheaper valuations compared to peers.

IPO Details:

Tata Technologies IPO, open for subscription from November 22 to November 24, has an issue size of ₹3,042.51 crore.

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This entirely comprises an offer for sale (OFS) of 6.09 crore equity shares by promoters and investors. The IPO price band is set at ₹475 to ₹500 per share.

Promoter Tata Motors, along with investors Alpha TC Holdings Pte Ltd and Tata Capital Growth Fund I, will collectively offload shares in the IPO.

The IPO allotment is expected to be finalized on November 30, and Tata Technologies shares are set to list on BSE and NSE with a tentative listing date of December 5.


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