Tata Group to launch IPO for Tata Technologies after 20-year break
2023.11.19 10:45
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MUMBAI – The Indian conglomerate Tata Group is returning to the public markets after a two-decade hiatus with an initial public offering (IPO) for its subsidiary, Tata Technologies. The offering is scheduled to open for subscription on Wednesday, November 22 and will close on Friday, November 24, during which time bids can be placed daily from 10 am to 5 pm UTC.
The IPO marks a significant moment for the group, known for its long-standing presence in various industries. The engineering and product development IT services company has set a price band of Rs475 to Rs500 per share for the IPO, which could value Tata Technologies at over Rs20,283 crore. This highly anticipated offer-for-sale (OFS) aims to raise at least Rs3,042.51 crore.
Investors interested in participating in the IPO have a minimum bid requirement of Rs14,250, which corresponds to a lot size of thirty shares. In a move that underscores its commitment to loyal investors, Tata Group has reserved a ten percent share allotment exclusively for shareholders of Tata Motors (NYSE:). This provision offers a strategic advantage to existing stakeholders within the conglomerate’s ecosystem.
The Securities and Exchange Board of India (SEBI) gave the green light for this public offering in June following Tata Technologies’ regulatory filings made in March. The upcoming IPO is seen as an opportunity for the company to capitalize on market conditions and provide liquidity to selling shareholders. It comes amid broader narratives highlighting individual financial losses due to fraudulent trading schemes, underscoring the importance of investing in legitimate and well-established firms.
With this move, Tata Group is positioned to make headlines in the financial markets, as industry observers and potential investors keenly watch this return to the public equity space by one of India’s most storied business houses.
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