Tata Motors’ shares hit a 52-week high of Rs 678.55 on BSE on Thursday (November 16) after it said that it would sell its 11.41 per cent equity shares worth Rs 4.62 crore, and also on a day when a Tata group company-Tata Tech- declared its IPO band price.
The stock of automobile company surpassed its previous high of Rs 677.90 touched on October 16, 2023. At the upper end of the price band, the size of the Tata Technologies’ IPO will stand at Rs 3,042.5 crore, while the company will be valued at Rs 20,283 crore.
The IPO has been issued under offer for sale scheme.
This is after nearly two decades when a Tata group company is coming up with an IPO. The last Tata group company to launch an IPO was Tata Consultancies, which launched an IPO in 2004.
Tata Tech was last valued at around $2 billion (Rs 16,300 crore), when TPG Climate picked up about a 9% stake in the company.
For the nine-month period ended December 2022, the company clocked 15% year-on-year (YoY) growth in revenue at Rs 3,052 crore. The service segment revenue contributed 88% of the total revenue. The company’s net profit during the same period stood at Rs 407 crore. Over FY 2021-23, its revenue grew at a compound annual growth rate (CAGR) of 30%, leading to a 46% EBITDA CAGR. PAT for the same period increased at a CAGR of 61.5%.
JM Financial, Citigroup Global Markets India, and BofA Securities India are the book-running lead managers to the IPO. The name of the registrar is Link Intime India Private Limited.
Bids can be made for a minimum of 30 equity shares and in multiples of 30 equity shares thereafter. The minimum bid amount for retail investors is Rs 15,000 while Rs 210,000 for non-institutional investors (NIIs). As for the qualified institutional buyers, it is Rs 1,005,000.
The employee quota stands at 2,028,342 equity shares.
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