Tata Technologies IPO: Shares List At 140 Per Cent Premium Over IPO Price On Debut

Tata Technologies Listing: The stock began trading at Rs 1,200 on the NSE and at Rs 1,199.95 on the BSE

The Rs 3,042.5-crore Tata Tech IPO had garnered heavy interest from all categories of investors, with over 73.38 lakh total applications.

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Shares of Tata Technologies made a stellar debut on the exchanges on Thursday as it got listed at Rs 1,200 on the NSE, a 140 per cent premium over its issue price of Rs 500. Tata Tech, a subsidiary of Tata Motors, was the first initial public offer (IPO) by Tata Group in after two decades. Tata Consultancy Services (TCS) was the group's last IPO in 2004. The stock began trading at Rs 1,200 on the NSE and at Rs 1,199.95 on the BSE.

The Rs 3,042.5-crore Tata Tech IPO had garnered heavy interest from all categories of investors, with over 73.38 lakh total applications. The public offer was subscribed 69.43 times, with the quota reserved for qualified institutional buyers (QIBs) getting booked a record 203.41 times.

The portion set aside for non-institutional investors (NIIs) and retail investors was booked 62.11 times and 16.50 times, respectively. Soon after listing, stock of Tata Technologies surged over 16 per cent to touch Rs 1,400 apiece on the BSE.

Tata Technologies' market valuation stood at Rs 52,939.74 crore during the morning trade.

Tata Technologies' public issue is entirely an offer-for-sale (OFS) of 6.08 crore equity shares. Under the OFS, Tata Motors will offload 4.63 crore shares, representing 11.4 per cent stake, private equity firm Alpha TC Holdings will sell 97.17 lakh shares or 2.4 per cent stake, and Tata Capital Growth Fund I will do away with 48.58 lakh shares or 1.2 per cent of the shareholding.

JM Financial, Citigroup Global Markets and BofA Securities were the book-running lead managers to advise the company on the IPO. Equity shares of Tata Technologies got listed on the BSE and NSE.

The company is a pure-play manufacturing-focused engineering research and development (ER&D) company, primarily focused on the automotive industry. The firm had clocked about 43 per cent jump in its consolidated net profit in the financial year ended March 31, 2023, while its revenue rose 25 per cent.

Besides, Tata Tech, shares of Gandhar Oil and Flair Writing are also scheduled to be listed on Thursday.