Tata Technologies IPO Subscription Dates Unveiled
In a momentous stride, Tata Group is poised to rekindle its presence in the primary market with the forthcoming Initial Public Offering (IPO) of Tata Technologies Ltd. This landmark event, scheduled to open its doors for public subscription from November 22 to November 24, 2023, marks Tata Group’s reentry into the IPO scene after the triumphant launch of Tata Consultancy Services (TCS) in 2004.
Crafted as an offer-for-sale (OFS), the IPO is set into motion by Tata Motors Ltd., the parent entity of Tata Technologies. With echoes of historical significance, Tata Group steps back into the limelight of the primary market, heralding a new era with Tata Technologies Limited, a pivotal subsidiary of Tata Motors. The journey began with the filing of the draft red herring prospectus (DRHP) on March 9, 2023, with the Securities and Exchange Board of India, paving the way for this momentous IPO.
A standout feature of Tata Technologies IPO is the reserved allocation of up to 10%—equivalent to 6,085,027 Equity Shares. This exclusive reservation is earmarked for eligible shareholders of Tata Motors Ltd., encompassing individuals and Hindu Undivided Families (HUFs) who hold public equity shares as of the DRHP filing date, which was Monday, November 13, 2023.
The IPO subscription window, set to unfold its gates on Wednesday, November 22, 2023, and draw to a close on Friday, November 24, 2023, is notably structured as an Offer for Sale (OFS). It’s imperative to note that the proceeds from this offering will not accrue to Tata Technologies. Shareholders of Tata Motors, including individuals and HUFs, have a dedicated 10% reserved portion within the IPO.
As anticipation swells around Tata Group’s resurgence in the IPO arena, crucial details such as the pricing, including the price band, remain pending determination. Tata Motors, having acquired its stake at ₹7.4 per share, holds an impressive 74.42% stake in Tata Technologies, as per the company’s annual report for 2022. Alpha TC Holdings and Tata Capital Growth Fund, additional stakeholders, secured their positions at ₹25.1 per share.
