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Tata Technologies, an IT solutions provider and arm of Tata Motors, is set to launch its initial public offering (IPO) – the first from a Tata Group company in 19 years since TCS in June, 2004. As part of the IPO, Tata Motors will sell 60,850,278 shares in Tata Technologies.
About Tata Technologies and Their Upcoming IPO
Tata Technologies is a leading global engineering and technology solutions provider with a focus on product lifecycle management, manufacturing engineering, and digital transformation. It is a subsidiary of Tata Motors, one of India’s largest automotive manufacturers.
With over three decades of experience, Tata Technologies has established itself as a trusted partner for companies across a wide range of industries, including automotive, aerospace, industrial machinery, and heavy equipment. Its primary line of business is to provide outsourced engineering services, helping clients to conceive, design, develop, and deliver better products.
What sets Tata Technologies apart is its deep-domain knowledge and expertise in the automotive industry, which it has expanded to adjacent industries such as aerospace, transportation, and construction of heavy machinery. The company has a global presence, with operations in over 30 countries and a team of over 8,000 professionals.
Tata Technologies is committed to innovation and sustainability, offering services to help companies develop sustainable products and reduce their environmental impact. Its focus on delivering customer value has earned it a reputation as a reliable partner for companies looking to drive innovation and growth.
Tata Technologies Operational Snapshot:
Tata Technologies Electric Vehicle Evolution:
Key Details of the Tata Technologies IPO: Date, Price, Valuations, and More
| SEBI IPO Approval | Tata Technologies IPO approved by SEBI |
| Price Band Announcement Date | November 17, 2023 |
| Anchor Investors Allotment Date | November 21, 2023 |
| IPO Opening Date | November 22, 2023 |
| IPO Closing Date | November 24, 2023 |
| Listing Date | November 29, 2023 (tentative) |
| Face Value | ₹2 per share |
| Price Band | ₹475 – ₹500 per share |
| Lot Size | 30 shares |
| Total Issue Size | ₹3042.51 crores |
| Offer for Sale | 60,850,278 shares |
| Issue Type | Book Built Issue IPO |
| Listing on | NSE, BSE |
Details of Tata Technologies’ Selling Shareholders in the IPO
| Name of Selling Shareholders | Type | Number of Equity Shares Offered |
| Tata Motors Limited | Promoter Selling Shareholder | Up to 46,275,000 Equity Shares |
| Alpha TC Holdings Pte. Ltd. | Investor Selling Shareholder | Up to 9,716,853 Equity Shares |
| Tata Capital Growth Fund I | Investor Selling Shareholder | Up to 4,858,425 Equity Shares |
Key Ratios to Consider When Evaluating the Tata Technologies IPO
| Particulars | Values |
| Share Price (As Per Unlisted Market)* | ₹ 850 |
| Market Cap (Based on Unlisted Market Price)* | ₹ 34,480 Crs |
| EPS (annualised FY23) | ₹ 13.38 |
| P/E (x) (Based on Unlisted Market Price)* | 63 |
| Book Value | 67.70 |
| P/BV (x) (Based on Unlisted Market Price)* | 12.55 |
Key Performance Indicators for Tata Technologies Ahead of Their IPO
| Particulars | 9 Months Period ended December,2022 |
| Revenue from Operations | 30,117.94 |
| Revenue attributable to the Services segment | 25,571.88 |
| Revenue attributable to the Services segment (% of Revenue from operations) | 84.91% |
| YoY growth in Revenue from Operations | 15.51% |
| YoY constant currency growth in Revenue from Operations (%) | 15.23% |
| Profit for the period/year | 4,074.67 |
| Profit Margin for the period/year (%) | 13.53% |
| EBITDA | 6,187.89 |
| Adjusted EBITDA | 5,782.88 |
| Adjusted EBITDA Margin (%) | 19.20% |
Source: Tata Technologies DRHP
Anticipated Tata Technologies IPO Date: What We Know So Far
Tata Technologies has filed its draft red herring prospectus (DRHP) on 9th March, 2023 for its upcoming IPO. The DRHP filing marks the first step towards the Tata Technologies IPO. The next step is the approval of the Tata Technologies IPO DRHP by the Securities and Exchange Board of India (SEBI).
Typically, SEBI takes around 1-2 months to approve the DRHP if the compliance is proper. However, this timeline can vary depending on several factors. After receiving SEBI’s approval, companies usually wait for the right market conditions before launching their IPO. This ensures that the IPO gets the best possible response from investors.
Based on the latest market buzz, we may anticipate that SEBI could approve Tata Technologies’ IPO in just a couple of days from now. If that happens, the Tata Technologies may launch its IPO in November, 2023. However, it’s important to keep in mind that these are just estimates, and the final IPO release date will depend on a range of factors, including market conditions and regulatory approvals.
Update: Tata Technologies IPO approved by SEBI
Updated on 27th June, 2023
BIG UPDATE: Tata Technologies IPO is now confirmed to open on 22nd November, 2023 and close on 24th November, 2023.
Anticipating Tata Technologies IPO Price: Factors to Consider and Market Outlook
One of the key aspects that investors are curious about when it comes to the Tata Technologies IPO is the anticipated IPO price. Several factors can influence the IPO price, including the company’s financial performance, industry trends, and market conditions.
Peer Comparison: A Crucial Factor in Anticipating Tata Technologies IPO Price and Valuation
When anticipating the IPO price of Tata Technologies, it’s crucial to compare it to its peers in the engineering and R&D services industry. Hence, comparing Tata Technologies to its peers, investors can anticipate both the IPO pricing and the valuation that the market may give the company post-listing.
However, it’s important to keep in mind that the final IPO price will depend on several factors and could change as the IPO process unfolds.
Tata Technologies Peers:
Tata Technologies has identified KPIT Technologies, Tata Elxsi, and L&T Technology Services as its peers in its IPO DRHP
Analyzing KPIT Technologies as the Closest Peer to Tata Technologies
If we analyse Tata Technologies IPO DRHP, on Page 164, it explains the deepest automotive footprint among India-based ER&D players and it has a balanced talent presence across offshore and onsite locations.
Hence, KPIT Technologies seems to be best suited to be compared with Tata Technologies.
The Tale of Two Engineering Firms: Analyzing the Financial Performance and Market Prospects of Tata Technologies and KPIT Technologies
9MFY22 Financial of Tata Technologies & KPIT Technologies
| Particulars | Tata Technologies | KPIT Technologies |
| Revenue from operations | 30,117.94 | 23,476.71 |
| Other income | 405.01 | 458.38 |
| Total Income | 30,522.95 | 23,936 . 09 |
| Total Expenses | 25,164.91 | 20,348 .12 |
| Profit before tax | 5,358.04 | 3,605 .8 4 |
| Profit for the period | 4,074.67 | 2,752 .81 |
| EPS (₹) (Basic) | 10.04 | 9.97 |
2. Financial are of 9 months ended December, 2022 for both the companies
Comparative Key Data of Tata Technologies vs KPIT Technologies
| Particulars | Tata Technologies | KPIT Technologies |
| Share Price | ₹ 850 | ₹ 916.80 |
| Market Cap | ~ ₹ 34,480 crs | ~ ₹ 25,134 crs |
| Face value | ₹ 2 | ₹ 10 |
| P/E (x) | 63.52 | 65 |
| P/BV (x) | 12.55 | ~ 15 |
1. Price as on 28-04-2023
2. Data for Tata Technologies is based on unlisted share price
3. Annualised FY23 EPS taken into account for calculation of Tata Technologies P/E
4. FY23 EPS taken into account for calculation of KPIT P/E
Stock Performance of KPIT Technologies, Tata Elxsi & Tata Technologies (Unlisted):
Investors considering the Tata Technologies IPO should take note of the remarkable growth of Tata Technologies unlisted shares, which have increased in value by 8 times, rising from as low as Rs. 90-100 to above Rs. 800. The increasing need for digital transformation and innovation in the automotive industry, along with Tata Technologies’ robust financial performance has captured the attention of investors, making Tata Technologies unlisted shares & Tata Technologies IPO an attractive investment opportunity
Tata Technologies vs KPIT Head-to-Head:
Expected Tata Technologies IPO Price and Valuations
Tata Technologies, KPIT Technologies, and Tata Elxsi are some of the major players in the technology industry, and their share prices and market capitalization values provide valuable insights into their valuation. As of 28-04-2023, Tata Technologies unlisted shares are trading at Rs 850 with a P/E ratio of 63x, KPIT Technologies is trading at 65x P/E with a market capitalization of Rs 25,134 crore, and Tata Elxsi is trading at 58x P/E with a market capitalization of Rs 41,374 crore.
Based on the current market trends and valuations of its peers, it is reasonable to assume that Tata Technologies may trade at a similar P/E ratio post listing. This projection indicates that Tata Technologies may have a valuation range of Rs 800-1100 per share. However, it is essential to note that the stock price is subject to several market and company-specific factors that could influence its actual valuation.
In conclusion, analyzing the share prices and P/E ratios of Tata Technologies, KPIT Technologies, and Tata Elxsi provides investors with valuable insights into their valuation and growth prospects. While KPIT Technologies seems to be the current leader in terms of investor confidence, it remains to be seen how Tata Technologies performs in the market post listing.
IPO Pricing for Tata Technologies: Key Considerations
As the market eagerly awaits the initial public offering (IPO) of Tata Technologies, there are several factors to consider when it comes to IPO pricing. While calculations suggest that the market may value Tata Technologies between 800-1100 Rs per share, the actual IPO pricing can be tricky, and it is ultimately the company that sets the IPO price.
Tata Group has a reputation for being an investor-friendly business behemoth, and it is expected that they may keep enough on the table for investors. This liberal IPO pricing strategy could help ensure a successful listing and boost investor confidence in the company’s future growth prospects.
The size of the IPO is also a critical factor to consider. Tata Technologies is expected to have a significant IPO size, and the company must take market conditions into account when finalizing the IPO price.
Considering these factors, it is possible that the IPO price of Tata Technologies could be around 500 Rs per share. However, it is essential to note that several market and company-specific factors could influence the final IPO price, and it is ultimately up to the company to determine the IPO price.
In conclusion, while there are several factors to consider when it comes to IPO pricing, the reputation of the Tata Group, the size of the IPO, and market conditions are some of the key factors that could influence the final IPO price of Tata Technologies. It remains to be seen how the company sets the IPO price and how the market responds to its initial public offering.
Tata Technologies IPO: Should You Book Profits or Wait for IPO Pricing?
Tata Technologies’ unlisted share price is at an all-time high, rewarding investors with more than 8x returns in just few years. The company is trading at almost the same valuations as its nearly listed peers in the unlisted market, creating confusion among investors on whether to book profits or wait for its upcoming IPO.
Investors are on the lookout for an arbitrage opportunity, where some early investors in unlisted shares of Tata Technologies are opting to book partial/full profits and wait for the IPO price to reveal so that they may have a chance to re-enter at probably lower levels. However, predicting the IPO price is challenging, and several factors needs to be considered.
Recap of Tata Technologies IPO: Price, Date, Valuations, and More
The Tata Technologies IPO is highly anticipated by investors and market watchers alike. In this blog post, we’ve covered key details about the IPO such as the expected price band, date, valuations, and review. We’ve also compared Tata Technologies with its closest peer, KPIT Technologies, to provide insights into its financial performance and market prospects. Additionally, we’ve discussed crucial factors to consider when anticipating the IPO price and valuation, and whether investors should book profits or wait for IPO pricing. Our goal is to provide readers with a comprehensive understanding of the Tata Technologies IPO, helping them make informed decisions.
Conclusion: What We Know So Far About the Tata Technologies IPO
Tata Technologies, a subsidiary of Tata Motors, is set to launch its initial public offering (IPO) in the coming weeks, and investors and traders are eagerly waiting for the announcement of the Tata Technologies IPO date and price. The Tata Technologies IPO date is confirmed: Tata Technologies IPO to open on 22nd November, 2023 and close on 24th November, 2023. The Tata Technologies IPO price band is expected to be around Rs. 500 per share.
Investors are keeping a close eye on the expected price band of Tata Technologies IPO. The Tata Technologies IPO is expected to have great fancy amongst all classes and categories of investors, given the strong financials and reputation of the company. The expected price band of Tata Technologies IPO is also a topic of much discussion among investors and traders, who are trying to make informed investment decisions.
In addition to the expected price band, Tata Technologies IPO valuations are also a point of discussion, given the strong market demand for the company’s unlisted shares. The company has a strong reputation in the engineering and design services space and has worked with several leading automotive and aerospace companies. This is the reason why Tata Technologies IPO is a hot topic amongst the investors in stock market.
Overall, the Tata Technologies IPO is generating a lot of buzz in the investment community, with many investors and traders eagerly anticipating its launch. Given the strong financial performance and reputation of the company, it’s no surprise that the IPO is expected to get good subscription. Investors are keeping a close eye on the IPO date and price announcement, as well as the valuations, to make informed investment decisions.
Disclaimer:
The information provided in this blog post is for informational purposes only. It should not be construed as financial advice. Investing involves risk, including the possible loss of principal. Before making any investment decisions, please consult with a qualified financial advisor. UnlistedArena.com or any of its affiliates or employees shall not be liable for any damages or losses arising from any use of this information. the information presented in this blog is based on the author’s own research and analysis, and while we have made reasonable efforts to ensure that the information provided is accurate and up-to-date, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained on the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
Frequently Asked Questions (FAQ) Regarding the Tata Technologies IPO
What is the expected size of the Tata Technologies IPO?
The expected size of the Tata Technologies IPO has not been officially announced yet, but it is anticipated to be around of around Rs. 3000-3200 crores approx
When will the Tata Technologies IPO be launched?
The exact date of the Tata Technologies IPO has been announced. Tata Technologies IPO is set to open on 22nd November, 2023 and close on 24th November, 2023
How many shares will be offered in the Tata Technologies IPO?
The number of shares to be offered in the Tata Technologies IPO is 60,850,278 shares.
What is the expected price range for the Tata Technologies IPO?
Considering different factors, it is possible that the IPO price of Tata Technologies could be around 500 Rs per share. However, it is essential to note that several market and company-specific factors could influence the final IPO price, and it is ultimately up to the company to determine the IPO price.
How can I apply for the Tata Technologies IPO?
You can apply for the Tata Technologies IPO through your bank or broker’s online portal
Will the Tata Technologies IPO be a good investment opportunity?
It is difficult to predict the future performance of an IPO. Investors should carefully evaluate the company’s financials, management, industry trends, and other factors before making an investment decision. Consulting with a financial advisor can also help in making an informed decision.
When will Tata Technologies IPO Allotment be declared?
Tata Technologies IPO Allotment will be declared post closing of its IPO. The IPO allotment dates are likely to be around 25-26th November, 2023. Post closure of Tata Technologies IPO, the IPO allotment will be declared on the website of registrar of the company.
How to buy Tata Technologies Unlisted Shares before IPO?
Process of Buying Tata Technologies Unlisted Shares:
– Get connected with us and inquire for the Tata Technologies Unlisted Shares
– We will quote the current prevailing market rates of the Tata Technologies Unlisted Shares (Subject to availability)
– If you agree on the rate and quantity, we will send our bank details. (Please note, we accept payment only through bank)
– Buyer transfers the fund in our bank account and buyer also need to send their demat details (for initiating share transfer process)
– Post receiving funds and demat details, we initiate transfer of Tata Technologies unlisted shares. The shares usually gets transferred on same/next working day in your demat account
For detailed buying process of Tata Technologies Unlisted Shares, refer here
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