Tata Motors on Saturday said its arm Tata Technologies has finalised the offer price, including the anchor investor offer price, at Rs 500 per equity share for its initial public offering (IPO).
The Rs 3,042.5 crore IPO of Tata Technologies, which provides engineering and product development digital services, was subscribed 69.43 times on the final day of subscription on Friday, driven by remarkable participation from institutional buyers.
The public issue had a price band of Rs 475-500 per share.
The size of the IPO aggregates to Rs 3,042,51 crore comprising an offer for sale of 4.63 crore equity shares by Tata Motors amounting to Rs 2,313.75 crore, 97.17 lakh equity shares by Alpha TC Holdings Pte Ltd, amounting to Rs 485.84 crore, and 48.58 lakh equity shares by Tata Capital Growth Fund I, amounting to Rs 242.92 crore, subject to finalisation of basis of allotment, the filing added.
The initial share sale of Tata Technologies received bids for 3,12,64,91,040 shares against 4,50,29,207 shares on offer, according to NSE data.
Tata Technologies is the first company from the Tata group to float an IPO in nearly two decades.
Tata Consultancy Services was the last IPO from the group in 2004.
“The oversubscriptions, even as the size is not very large, is a positive factor and this shows that if an issue is well priced, leaving something on the table, investors are willing to invest,” said Arun Kejriwal, founder of Kejriwal Research and Investment Services.
Other listings this week included Fedbank Financial Services, Flair Writing Industries, Indian Renewable Energy Development Agency, and Gandhar Oil Refinery. They were oversubscribed between 2.20-64.07 times.
India has seen 196 IPOs so far in 2023, a record both at home and compared with any other country.
The domestic equity market has hit record highs this year as India’s economic growth prospects and a vast consumer base make it an attractive destination for companies and investors.
Kejriwal expects this momentum to continue in the coming months.
“There seems to be an appetite for IPOs as there are many in the pipeline. There is money. As long as people get the pricing right, there should be no concern,” he added.
