The grey market premium (GMP) for Tata Technologies’ initial public offering (IPO) is ₹351, unchanged from ₹351 yesterday. This indicates that despite periodic swings on Dalal Street, the Tata Technologies IPO GMP has stayed stable.
Exciting News for Investors: Tata Technologies IPO Launch on November 22, 2023
Investors and enthusiasts, mark your calendars! Tata Technologies Ltd.’s initial public offering (IPO) is set to grace the Indian primary market on November 22, 2023, providing a golden opportunity for savvy investors. Let’s delve into the details and explore why this IPO is creating a buzz.
Tata Technologies IPO Subscription Details and Pricing
The Tata Technologies IPO subscription window will be open until November 24, 2023, giving investors a brief yet crucial timeframe to participate. The price band for this much-anticipated IPO is fixed at ₹475 to ₹500 per share, making it an attractive proposition for potential shareholders.
Tata Technologies Ltd. aims to raise an impressive ₹3,042.51 crores through this initial offer, following an offer for sale (OFS) model. Investors should note that applications for the IPO will be accepted in lots, with one lot comprising 30 company shares. As such, a retail investor needs a minimum of ₹15,000 (₹500 x 30) to apply for this promising public issue.
Key Dates to Remember Tata Technologies IPO
Make sure to mark these dates on your calendar:
- Opening Date: November 22, 2023
- Closing Date: November 24, 2023
- Allotment Date: Expected on November 27, 2023
- Listing Date: Anticipated on November 29, 2023
Expert Reviews and Recommendations
Ventura’s Perspective: Subscribe for Potential Gains
Ventura expresses optimism, stating, “With the gradual recovery in the global economy, rising manufacturing capex, and the shift in manufacturing from the US, Europe, and China to India, we anticipate strong financial performance in the coming years for TTECH.” At the IPO price of INR 500 (upper price band), TTECH is valued at a TTM P/E of 28.3X. Considering growth opportunities and strong fundamentals, Ventura recommends a SUBSCRIBE rating for this IPO.
Arihant Capital’s Advice: Apply for Diverse Range of Services
Arihant Capital recommends an APPLY tag for the public offer, highlighting Tata Technologies Limited’s diverse range of services, including IT consultancy, SAP implementation, and CAD/CAM engineering and design consultancy. The revenue breakdown indicates approximately 80% comes from services, 11% from products, and 9% from education. Strong partnerships and the recent empanelment by Airbus signal significant growth potential.
Valuation and Future Outlook
Tata Technologies has demonstrated robust revenue and profit after tax (PAT) growth, with a CAGR of 36% and 62%, respectively, from FY21 to FY23. In H1FY24, there was a remarkable 34% and 36% YoY growth in revenue and PAT. At an upper-band valuation of INR 500, the issue is valued at a PE ratio of 32.5x based on FY23 EPS. Arihant Capital recommends subscribing for both short-term listing gains and long-term investment prospects.
