Tata Technologies IPO: Co fixes price band at Rs 475-500 per share

Tata Technologies has set the price band of its initial public offer at Rs 475-500 per share. At the upper end of the price band, the size of the Tata Motors' arm's IPO will stand at Rs 3,042.5 crore, while the company will be valued at Rs 20,283 crore.

The minimum lot size for an application is 30 shares.

According to reports, the price is about about 47 per cent lower than its price in the unlisted market where the stock currently trades at Rs 950 per share.

Tata Technologies will launch its initial public offering on November 22 and close of November 24. This will be the first maiden share sale by a Tata group firm in nearly two decades. The last IPO from India's most valuable conglomerate was that of Tata Consultancy Services in 2004.

According to the latest red herring prospectus (RHP), the IPO will consist of an offer for sale of 60.85 million shares. The selling shareholders include Tata Motors (to divest 46.3 million shares, or 11.41 per cent stake), Alpha TC Holdings (9.72 million shares, or 2.4 per cent) and Tata Capital Growth Fund (4.86 million shares, or 1.2 per cent).

Notably, Tata Tech has cut its IPO size by more than a third. When the company had filed its draft RHP with market regulator Sebi in March, it had intended to sell 95.71 million shares, or 23.6 per cent equity. Back then, Tata Motors had plans to sell 81.33 million shares in the IPO. The shares to be divested by Alpha TC and Tata Capital Growth Fund remain the same.

Financially, Tata Technologies' net worth has grown from Ra 2,142.5 crore at the end of March, 2021, to Rs 2,853.13 crore at the end of September 2023. Its profit after tax climbed to Rs 624 crore at the of the March 2023 from Rs 239 crore at the end of March 2021. However, the profit fell to Rs 352 crore at the end of September 2023.