Tata Tech IPO allotment in next few hours, GMP stays firm; here's what to expect

Tata Technologies IPO is among the most buzzing words at Dalal Street amid the ongoing IPO frenzy. The extended weekend, following the market's holiday on Monday on the account of 'Guru Purnima' has pushed the investors' anxiety for the much-awaited IPO by the Tata Group to the moon.

Tata Technologies, whose allotment status has not been declared as of Tuesday morning, led to bridge many expectations thanks to its heavy subscription numbers from all the categories of investors and hefty premium in the grey market, which has been signaling strong upside for the investors.

Among the expectations of bidders and investors, the allotment of the IPO, listing date and potential listing price are key concerns by the company. Here's what should one expect from the Tata Technologies IPO as of the current trends:

Allotment: Tata Technologies IPO allotment status shall be declared in next few hours. According to the sources, the basis of allotment by Tata Technologies is set to take place in next 24-hours and the status of all applications shall be declared by debit of amounts or revocation of the IPO mandates.

Investors, who bid for the issue of Tata Technologies, can check the allotment status on the BSE website's IPO application check page. Allotment status can also be checked through the online portal of Link Intime India, the registrar to the issue.

Listing Date: Shares of Tata Technologies will be listed at the bourses on Thursday, November 30. The company shall be listed on both the exchange- BSE and NSE. However, the listing ceremony will take place in the BSE's International Convention Hall on Thursday between 9-10 am.

Listing price: Tata Technologies is likely to deliver a robust listing pop at debut if one goes by its premium in the grey market. According to the various sources, the Tata Group company is commanding a grey market premium of Rs 410-420 per share, suggesting a listing pop of 82-84 per cent for the investors. If this holds true, Tata Tech shares may debut at Rs 910-920 at Dalal Street.

Given the immense investor interest and the company's robust capabilities, Tata Technologies is poised for a successful listing on the Indian stock exchanges and it will be interesting to witness this listing, said Shivani Nyati, Head of Wealth at Swastika Investmart.

Tata Technologies, was the first IPO of Tata Group in nearly two decades, after Tata Consultancy Services Ltd (TCS). The company has separate reservations for the shareholders of Tata Motors Ltd and Tata Motors DVR Ltd and it also reserved some shares of eligible employees of the company too.

The portion for qualified institutional bidders was subscribed a stellar 203.41 times, while the portion reserved for non-institutional investors saw 62.11 times bidding. The allocation reserved for retail investors, shareholders of Tata Motors and eligible employees was booked 16.50 times, 29.20 times and 3.70 times, respectively during the bidding process.

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To recall, Tata Technologies, sold its shares in the range of Rs 475-500 apiece with a lot size of 30 equity shares between November 22-24 to raise a total of Rs 3,042.51 crore via its primary stake sale. The issue was entirely an offer for sale of up to Rs 6,08,50,278 equity shares by Tata Motors and other selling shareholders.

Fueling this IPO frenzy is a remarkable surge in retail investor engagement, empowered by seamless access to online trading platforms and an escalating understanding of the stock market. Inflated grey market premiums create a buzz, enticing investors to actively participate in the IPO bonanza, said Trivesh D, COO, Tradejini.

“India's stable macroeconomic outlook, political stability, and robust corporate earnings, prompting both domestic institutional investors (DIIs) and FIIs to fortify their positions in the burgeoning market. As the IPO saga unfolds, the convergence of retail enthusiasm, global investor confidence, and media amplification paints a vivid picture of India's thriving economic narrative, ” he said.

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