The Initial Public Offers (IPO) of Tata Technologies, Fedbank Financial Services, Flair Writing Industries, and Gandhar Oil Refinery will be open for subscription, on Wednesday, November 22. Interested investors have the opportunity to participate in these IPOs until November 24.
Tata Technologies
The company operates in the Engineering Research and Development (ER&D) segment, which is expected to grow at a compounded annual rate of 10% to reach $2.7 trillion over the next five years, according to a Zinnov report. The automotive sector, the largest manufacturing ER&D vertical, is on the brink of significant change with the rise of Connected, Autonomous, Shared, and Electrified (CASE) mobility. Zinnov estimates that global automakers are likely to invest $1.2 trillion through 2030.
Tata Technologies: IPO
- IPO Size: Tata Technologies aims to raise ₹3,042.51 crore through its initial offer, which is 100% Offer for Sale (OFS) in nature.
- Investment Limit: With a price band of ₹475 to ₹500 per equity share, a retail investor will need a minimum of ₹15,000 (₹500 x 30) to apply for the Tata Technologies IPO.
- Lot Size: A single lot in the IPO comprises 30 company shares.
- Listing: The IPO, valued at ₹3,042.51 crore, is proposed for listing on both BSE and NSE.
- Listing Date: Following the T+3 schedule, the IPO is anticipated to be listed on the third trading session after the public issue's closure. With the IPO ending on November 24, 2023 (Friday), it is expected to be listed on Wednesday the following week or on November 29, 2023.
- Face Value: In Tata Technologies IPO, the face value is Rs 2 per share, i.e, the accounting value of each share is Rs 2.
- Offer for Sale: The Offer for Sale comprises 60,850,278 shares - which are being offered by existing stakeholders in Tata Technologies as part of the IPO.
Analysts from IDBI Capital, Reliance Securities, Arihant Capital, and Mehta Equities have given a 'Subscribe' rating to Tata Technologies' IPO. This positive recommendation is based on factors such as promising business prospects, strong parentage, and favourable financials. The analysts note improvements in margins and ratios, contributing to their optimistic view on the IPO.