After record-breaking IPO, Tata Technologies shares set to get listed this week

The Tata Technologies IPO has become a prominent topic on Dalal Street amidst amid the ongoing IPO frenzy. The extended weekend, following the market’s closure on Monday for ‘Guru Purnima,’ has heightened investors’ anticipation for the eagerly awaited Tata Group IPO to unprecedented levels.

Following its record-breaking IPO and a phenomenal response, the focus now shifts to the share allotment and listing of Tata Technologies this week. Surpassing LIC’s previous record, Tata Technologies received an unprecedented 73.58 lakh applications, outshining LIC’s 73.38 lakh applications during its IPO in May 2022.

Tata Technologies IPO allotment and listing; here’s what to expect

The company is expected to finalise the basis of allotment of IPO shares by November 28 and the shares of Tata Technologies will be listed on both BSE and NSE on Thursday, November 30. The equity shares are expected to be credited to the demat accounts of successful investors by November 29. These are tentative dates, which may change.

Anticipated by bidders and investors, the IPO allotment, listing date, and potential listing price are pivotal concerns for the company. Here’s what to expect from the Tata Technologies IPO based on current trends:

Allotment: The Tata Technologies IPO allotment status is expected to be announced shortly. Sources indicate that the basis of allotment by Tata Technologies will likely occur within the next 24 hours, revealing the status of all applications through debit of amounts or revocation of IPO mandates.

Investors who bid for Tata Technologies’ issue can verify the allotment status on the BSE website’s IPO application check page or through the online portal of Link Intime India, the registrar to the issue.

Listing Date: Shares of Tata Technologies are scheduled for listing on Thursday, November 30, at both BSE and NSE. The listing ceremony is set to take place at BSE’s International Convention Hall between 9-10 am on Thursday.

Listing Price: If market indications hold, Tata Technologies might witness a robust listing surge upon debut, indicated by its premium in the grey market. Various sources suggest the Tata Group company commands a grey market premium of Rs 410-420 per share, hinting at a listing surge of 82-84 percent for investors. If this projection materializes, Tata Tech shares may debut at Rs 910-920 at Dalal Street.

Shivani Nyati, Head of Wealth at Swastika Investmart, remarked, “Given the substantial investor interest and the company’s strong capabilities, Tata Technologies is set for a promising listing on the Indian stock exchanges. It will be intriguing to witness this event unfold.

How can investors check shares allotment status?

Investors can check the shares allotment status either on the BSE website or the portal of the IPO registrar by following these easy steps.

On the BSE website:

  • Investors have to select ‘equity’ and ‘issue name’ (Tata Technologies Limited) in the dropdown
  • Enter either ‘application number’ or ‘PAN number’
  • Check the box ‘I am not a robot’, and finally click on the ‘search’ button

On the IPO registrar portal:

  • Select ‘Tata Technologies Limited – IPO’ in the dropdown,
  • Select and accordingly enter either ‘PAN number,’ ‘application number’ or ‘DP Client ID’
  • Finally click on the ‘search’ button

Tata Technologies IPO and Grey market premium

The IPO shares seem to be getting healthy responses in the grey market too. In fact, the premium has increased by around 10 per cent in the last few sessions. Shares were available at a premium of 80 per cent over the issue price of Rs 500 per share in the grey market, at the time of writing this article. It was quoted at a 70 per cent premium before the opening IPO for a subscription.

For the unversed, the grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing. Generally, the participants look at a grey market premium to know the expected listing price of any IPO, though it does not cover the fundamentals of the company.

When was Tata Technologies IPO launched?

Tata Technologies marked the Tata Group’s first IPO in nearly two decades, following Tata Consultancy Services Ltd (TCS). The company allocated shares separately for shareholders of Tata Motors Ltd and Tata Motors DVR Ltd, along with a reserved portion for eligible employees.

During the bidding phase, qualified institutional bidders subscribed a remarkable 203.41 times, while non-institutional investors saw a bidding rate of 62.11 times. The allotment for retail investors, Tata Motors shareholders, and eligible employees experienced oversubscription rates of 16.50 times, 29.20 times, and 3.70 times, respectively.

Recall that Tata Technologies offered its shares in the price range of Rs 475-500 per share, with a lot size of 30 equity shares, from November 22-24. The primary stake sale raised a total of Rs 3,042.51 crore. The IPO comprised an offer for sale of up to Rs 6,08,50,278 equity shares by Tata Motors and other selling shareholders.

Retail Individual Investors (RIIs) subscribed 16 times, while qualified institutional buyers showed a remarkable 203 times subscription, and non-institutional investors at 62 times. Analysts attribute the IPO’s strong response to its appealing valuations compared to industry peers and the robust brand value associated with the Tata lineage.

Specializing in manufacturing-focused engineering research and development (ER&D), Tata Technologies primarily serves the automotive industry. It holds engagements with 7 of the top-10 automotive ER&D spenders and 5 among the top 10 new energy ER&D spenders in 2022. Its revenue distribution as of FY23 stands at 80% from services, 11% from products, and 9% from education.

Key strengths of the company include specialized expertise in emerging automotive trends like electric vehicles, deep industry knowledge, a global delivery model facilitating close client interaction, and scalability, among other strengths.