Tata Technologies, a global engineering services company, is into product development and digital solutions for global original equipment manufacturers. Recently, the company has filed an addendum with SEBI to its Draft Red Herring Prospectus (DRHP). Tata Technologies IPO is among the most awaited on the street, especially for its investors and shareholders. After getting approval from the market watchdog for its IPO, the company announced the 10% reservation of its first sale of IPO shares for its eligible employees and the shareholders of Tata Motors, its parent company. Since this news was announced, a significant impact can be seen on Tata Technologies share price. Let’s discuss the reason behind Tata Technologies announcement of a 10% reservation for Tata Motors shareholders and its significant impact on its unlisted shares.
Tata Technologies Filed An Addendum With SEBI
Tata Technologies, an IPO-bound Tata Group entity, filed an addendum with the capital market regulator Securities Exchange Board of India (SEBI), to its Red Draft Herring Prospectus (DRHP). As per the resources, the 10% portion is kept aside for the shareholders of Tata Motors. The employees of the company have been allocated 0.5% of the post-offer paid-up equity share capital.
“Employees eligible to buy shares in the IPO can apply in the Employee Reservation Portion. They can apply at the cut-off Price. The maximum bid amount under the TML shareholders reservation portion by an eligible TML Shareholder shall not exceed ₹2 lakh. On the other hand, the maximum bid amount under the employee reservation portion by an eligible employee should be under ₹5 lakh,” as per the addendum.
It is also revealed that these shares will be available for allocation on a proportionate basis. However, the company didn’t reveal or confirm the discount for shareholders of Tata Motors and eligible employees of the company.
A Glimpse Of Tata Tech IPO
Tata Technologies is the most awaited IPO of the primary market. The Tata Group offers this IPO after 17 years. Tata Technologies is planning to offer 9.57 crore shares in its Initial Public Offerings (IPO) with a face value of Rs 2 per share, according to the addendum file with SEBI. As a part of Tata Tech IPO, Tata Motors will also sell up to Rs. 8.11 crores of shares through an Offer For Sale (OFS), while Alpha TC will sell about Rs. 9.71 crores of shares and Tata Capital Growth Fund I will offer up to Rs. 48.58 lakh shares. To facilitate its IPO process, the company has appointed financial institutions such as Citi, JM Financials, and BoFA Securities.
The shares of Tata Technologies are filed to be listed on NSE and BSE. You must also know that 50% of the shares of Tata Technologies IPO will be available for qualified institutional bidders, whereas non-institutional investors (NIIs) will get more than 15% of the company’s shares. Retail investors will secure around 35% of shares in this IPO. The news of the IPO has created a frenzy among investors, due to which they’re curious to know about Tata Technologies unlisted share price and its impact in the future.
What Does The Future Hold For Tata Technologies?
The future of Tata Technologies seems to be bright. After a major gap of almost two decades, Tata Group is all set to launch its IPO in the mid of November 2023, per the stock market experts. With the funds raised through IPO, The company can expand its business portfolio. Once the Tata Technologies IPO gets released, it will positively impact Tata Technologies share price. As a retail investor, you can invest early in Tata Technologies unlisted shares to gain access to the first sale of its IPO shares. Tata Tech IPO can be an excellent opportunity for you to yield high ROI and diversify your investment portfolio.
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Frequently Asked Questions
1.Why will Tata Motors shareholders get a 10% reservation with Tata Tech IPO?
Ans. Tata Technologies has filed an addendum with SEBI to its DRHP. The company is reserving a portion of its upcoming IPO for the employees and Tata Motors’ shareholders.
2.What was the net profit of Tata Technologies for the financial year 2022-2023?
Ans. In FY 22-23, the net profit of Tata Technologies surged 42.8% to Rs. 624.03 crore, up from Rs. 436.9 crore in fiscal year 21-22.
3.Is it profitable to invest in Tata Technologies unlisted shares?
Ans. Yes, buying Tata Technologies unlisted shares is a profitable investment for retail investors. In June, the company received approval from a market watchdog for its IPO.
4.How and where do I check Tata Technologies share price?
Ans. You can get all the company details and share prices at Stockify. Our platform is user-friendly and intuitive, and you can check any company’s unlisted share price quickly.
5.Which is the reliable platform to buy and sell Tata Technologies unlisted shares?
Ans. Stockify is known to be the leading online stock broking platform in India. The expert brokers at Stockify will guide you throughout the trading process and make your investment hassle-free.