Tata Technologies, a leading global engineering and product development services company, has finalised the offer price for its Initial Public Offering (IPO) at ₹500 per equity share. The company had initially announced a price band of ₹475 to ₹500 per share.
The IPO, which is expected to raise ₹3,042.5 crore, was oversubscribed by 69.43 times on the final day of bidding. This was driven by strong demand from institutional investors, who subscribed to their portion 202.46 times.
The company plans to use the proceeds from the IPO to fund its growth plans, including expanding its global footprint and investing in new technologies.
Here are some of the key details of the IPO:
- Offer price: ₹500 per share
- Issue size: 6.08 crore shares
- Fresh issue: 5.92 crore shares
- Offer for sale: 0.16 crore shares
- Oversubscription: 69.43 times
- Listing date: November 29, 2023
Here are some of the factors that are expected to drive Tata Technologies’ growth in the coming years:
- Increasing demand for engineering and product development services: The global market for engineering and product development services is expected to grow at a CAGR of 10% over the next five years. This growth is being driven by the increasing complexity of products and the need for faster time-to-market.
- Tata Technologies’ strong global presence: Tata Technologies has a strong global presence with a network of over 50 delivery centers in 20 countries. This gives the company a competitive advantage in terms of being able to serve clients in multiple geographies.
- Tata Technologies’ focus on innovation: Tata Technologies is a leader in innovation and has a strong track record of developing new technologies. This gives the company a competitive advantage in terms of being able to meet the needs of its clients.
Analysts are optimistic about Tata Technologies’ prospects and believe that the company is well-positioned for growth. ICICI Securities has a buy rating on the stock with a target price of ₹620 per share. HDFC Securities has a buy rating on the stock with a target price of ₹650 per share.
The IPO is expected to be a success and is likely to be oversubscribed by several times. Investors who are interested in subscribing to the IPO should consult with their financial advisors.