NEW DELHI: The three-day initial public offering (IPO) of Tata Technologies was a big success as the public issue was subscribed 69.43 times on Friday, the final day of bidding. The IPO received bids worth Rs 1.56 lakh crore for an issue size of Rs 2,200 crore, excluding the anchor portion, with investors placing a record 2,83,19,60,790 bids against the total issue size of 4,50,29,207.
The booking was led by qualified institutional buyers, with this quota getting subscribed by 203.41 times. The portion set aside for non-institutional investors was booked 62.11 times. Retail investors and Tata Motors shareholders subscribed 16.5 times and 29.19 times, respectively, on the final day.
The first public issue from Tata Group since the TCS IPO came out in 2004, was fully subscribed within minutes after its launch on Wednesday. It closed its debut day with 6.54 times bookings and Day 2 with 14.85 times. Owing to fair valuation, the strong brand of Tata Group, business growth opportunity, high premium in the grey market among other things, it was widely expected that the Tata Tech IPO would be a big hit among investors. Among the large IPOs of this year, the Tata IPO has received more bids than JSW Infrastructure and the recently concluded IPO of the Indian Renewable Energy Development Agency.
Tata Tech’s subscription levels are lower than the IPOs of Plaza Wires, IdeaForge Technology and Utkarsh Small Finance Bank.Incorporated in 1994 as a part of Tata group, it is a global engineering services company. The firm offers product development and digital solutions including turnkey solutions, to global original equipment manufacturers (OEMs) and their suppliers.
“It posted consistent growth in revenue and margins in last few years. Tata is known as investor friendly group and enjoys preference among investors. Company has differentiated capabilities in new age automation trend EV’s. Investors can invest in the IPO with a long-term perspective,” said Master Capital Services in a recent note.