TATA Technologies has launched its first IPO in 19 years with a lot of hype among stock market enthusiasts. Tata Technologies IPO’s grey market price(GMP) is running above 350, and the price point of one share is 500 rupees.
It’s expected that Tata Technologies IPO will be listed at 850 rupees per share. They published their IPO allotment status on the 29th of November, and they shared the listing date as November 30.
According to market researchers, Tata Technologies can give a 70%-80% listing gain on the first day itself. But you should check all the ins and outs of the company before bidding on it. So let’s dig deep into it and figure out all in detail.
Tata Technologies IPO Overview
Tata group always has been transparent with its investors, customers and employees. They have never disappointed those who believed them.
When The IPO came for Tata Consultancy Services about 19 years ago, many people invested in it, and they earned a very good amount of money as it was a super successful launch. The current valuation is 34x of what was the valuation at that time. A good example is Rakesh Jhujunwala.
Titan, A Tata product, has transformed his life by 360*. Tata Technologies was started in 1989; back then, it was a part of Tata Motors, and in 1994, it got separated and built a new division called Tata Technologies to give one of the best Engineering research and development services to the world.
The excitement is everywhere about this huge IPO launch of Tata group.
Should Tata Technologies also perform as well as Titan and TCS? Well, there are different comments in the market, but one thing is very common among these 3, that is the previous two companies also started in the same way.
They were part of a big division and then separated to run smoothly. Titan was also built by being divided from Tanishq. Tata Technology provides engineering research and development(ER&D) services to big manufacturing hubs like Aerospace, automotive manufacturing and other heavy machinery manufacturing.
The ER&D market is one of the super growing markets in the world. The growth rate was 14-15% per year in the last 4 years, and its expected that it will grow by 16-17% per year in the upcoming years.
The total revenue of Tata Technologies was 2391 Crores in 2021, and it already crossed 3500 Crores in FY23-24; that means the revenue number almost doubled in just three years. The EBITDA margin is consistent, about 16-18% every year in this company.
Steps to check IPO allotment status
The valuation at which Tata Technologies IPo will be launched is around 20000 Crores. There is good news for existing Tata Motors shareholders. A total of 10% of the total budget will be reserved for the existing Tata Motors shareholders.
So, If you have a Tata Motors share in your portfolio as of 13th November 2023, you should apply for this 10% quota. The total amount of money that will be raised is 3042 crores rupees. Now, let’s see how we can check the allotment status.
First, You can check from the Registrar’s website.
1. You can go to the registrar’s website – https://linkintime.co.in/IPO/public-issues.html
2. You will see the form for IPO allotment status check.
3. Select the ‘Tata Technologies’ from the company list dropdown menu.
4. Put your PAN number & other details.
5. Complete any other verification process if required, like Captcha, Google verification, etc.
6. Click on the Submit button. Now, all details will be in front of you, and you can check the number of shares you applied for and the number of shares allotted to you.
The second option is directly from the NSE/BSE website.
1. Go to the NSE or BSE official website.
2. Go to the ‘Equity’ option to check the status.
3. Select the ‘Tata Technologies’ from the dropdown menu.
4. Put your PAN number, Application number & other details.
5. Complete any other verification process if required, like Captcha, Google verification, etc.
6. Click on the ‘Submit’ button, and you’ll see all the details similar to the previous step.
What the allotment status indicates
There are many things that come under consideration when you’re analyzing the allotment status and the listing gain. If you’re thinking you should exit after the listing gain or you should retain it for a longer period of time, then you should consider if the customer segment market of the company is growing or not.
So, do your research and consider the balance sheets, growth rate, Company’s customer segment and all other factors in the consideration and decide according to that.
We have also covered about Sam Altman controversy. You can read it here.
Final words
No matter what they launch, people always trust the Tata group, and you’ll see the benefit of this trust in this launch, too. No one can ever predict what will happen in the launch, but as Banks, Investors and customers have a big trust in the company, it’s expected that this launch will also provide a win-win situation for all the parties.