Tata Technologies' IPO, which started its subscription today, witnessed overwhelming demand, with the entire issue getting fully subscribed within the first hour of the bidding process.
By 10:48 am today, a total of 6,04,26,120 shares were bid for, surpassing the issue size of 4,50,29,207 shares by 1.34 times.
Notably, the quota set aside for qualified institutional buyers saw a subscription of 1.98 times, with investors bidding for 2,08,51,470 shares against the reserved 1,05,47,382 shares in the institutional category.
In addition to the strong demand from institutional investors, non-institutional investors (NIIs) showed significant interest in Tata Technologies' IPO, subscribing 1.45 times the allocated quota.
Retail individual investors (RIIs) were also active participants, with a subscription of 1.02 times within the initial 60 minutes of the bidding process. The shareholders' quota also witnessed a subscription of 1.59 times, indicating the interest from existing shareholders in increasing their stake. On the other hand, the employee quota saw a subscription of 14 per cent.
Tata Technologies has successfully raised Rs 791 crore from anchor investors in anticipation of its initial public offering (IPO).
The anchor investors, a notable list of financial institutions, include Fidelity International, Nippon Life India, BNP Paribas, SBI Mutual Fund, HSBC, Kotak, DSP, Motilal Oswal, Edelweiss, and Goldman Sachs, among others. Among the anchor investors, SBI Multi Asset Allocation Fund secured the highest allocation at 4.30%."At the upper end of the price band, Tata Tech is being valued at 32 times its FY23 EPS versus peers' such as LTTS (40 times its FY23 EPS), Tata Elxsi (69 times its FY23 EPS), KPIT (110 times its FY23 EPS), and Cyient (37 times its FY23 EPS),” said Emkay Global, as per Business Today. “Tata Tech's growth trajectory over FY16-23 remains slower than peers', but has seen improvement in the last three years because of traction in select accounts. Weakness in a large client in H1FY24 due to near completion of the large full-vehicle development projects may weigh on the company's near-term performance which, in our view, is adequately captured in the IPO valuations."