Tata Technologies, among the top global engineering services firms under the Tata Group, has officially commenced its eagerly anticipated initial public offering (IPO) on Wednesday, November 22. The subscription window is set to conclude on Friday, November 24. The price band ranges from Rs 475 to Rs 500 per share with a face value of Rs 2.
On the first day of Tata Tech IPO's subscription commencement, the overall subscription status for the Tata Group IPO reached 6.55 on Wednesday. Particularly noteworthy was the NII subscription, standing at an impressive 11.69 times, with retail investors subscribing 5.44 times. The Qualified Institutional Buyers (QIBs) portion saw a subscription of 4.08 times.
"Tata Technologies is a leading global engineering services company with deep expertise in the automation industry. The company posted consistent growth in revenue and margins in the last few years. Tata is known as an investor-friendly group and enjoys special preference amongst investors. The company has differentiated capabilities in new age automation trend EVs," said Master capital services Ltd.
Investors can invest in the Tata Group IPO with a long-term perspective, the brokerage firm added.
The company derives a substantial portion of its revenue (almost 73 per cent), from its top five clients, which includes Tata Motors. The revenue stream is heavily reliant on clients concentrated within the automotive segment.
On the second day for subscription, the retail investors' section of the Tata Tech IPO witnessed a subscription of 9.35 times, the NII portion was subscribed 23.24 times, and the Qualified Institutional Buyers (QIB) portion was booked 6.21 times till 02:00 pm. The employee portion has a subscription rate of 1.98 times, while the shareholder-reserved portion has been subscribed 16.26 times.
Multiple brokerages have given a 'buy' rating for the IPO, reflecting continued investor confidence in the TATA brand.