Tata Technologies IPO is just a few days away and the much-awaited primary offering by the Tata Groups has reservation for as many as five categories. Other than qualified institutional investors, an individual investor has the option to apply under non-institutional investors (more than Rs 2 lakh), retail investors (up to Rs 2 lakh), shareholders of Tata Motors Ltd (TML) and eligible employees of Tata Tech. Now the question arises that can one investor apply in multiple categories of Tata Technologies IPO. The simplest answer to the question is: Yes. An individual investor, if eligible, can apply in as many as three categories in the Tata Tech IPO and their bids will not be considered as multiple bids. However, not all investors fall into this criterion. An eligible employee, who also holds some shares of Tata Motors, can apply under three categories - as an employee, as a shareholder of Tata Motors and as a retail or non-institutional investor. However, employees can get an allotment of maximum shares worth Rs 5,00,000, as mentioned in the RHP of the company. An eligible employee bidding in the employee reservation portion can also bid in the TML shareholders reservation portion and also in the non-institutional portion or the retail portion and such bids will not be treated as multiple bids, said the RHP of Tata Technologies. Similarly, a shareholder of Tata Motors (TML) can bid under two categories, namely TML shareholders and non-institutional portion or retail quota. However, an individual can not apply under both a non-institutional quota or retail portion during the bidding process. "Eligible TML shareholders bidding in the TML shareholders reservation portion can Bid up to a maximum bid amount of Rs 200,000. Further, eligible TML shareholders bidding in the TML shareholders reservation Portion can also bid in the employee reservation portion and also in the non-institutional portion or the retail portion, and such bids will not be treated as multiple bids," added the RHP. Tata Technologies has reserved up to 2,028,342 equity shares, or 0.50 per cent of its post offer paid-up equity share capital, for its eligible employees; while up to 60,85,027 equity shares, 10 per cent of its post offer paid-up equity share capital, have been reserved for the eligible shareholders of Tata Motors Ltd. Tata Technologies IPO will open for subscription on Wednesday, November 22 and can be bid till Friday, November 23. The company is selling 6,08,50,278 equity shares, via offer-for-sale (OFS) route, to raise a total of Rs 3,042.51 crore. The price band has been fixed at Rs 475-500 apiece with a lot size of 30 equity shares.
Tata Technologies (Tata Tech) is a leading global engineering services company that offers product development and digital solutions to global OEMs and their tier-1 suppliers. The company’s offerings focus on manufacturing-led verticals – automotive, aerospace, and transportation and construction heavy machinery, said Emkay Global.
Its areas of expertise include product engineering and manufacturing engineering in the mechanical domain (such as body engineering), while it is adding capabilities in the software and embedded engineering segments.
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, is adequately captured in the IPO valuations, Emkay said.
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