Tata Technology lists with 140% premium at Rs. 1,200
What's the story
Tata Technologies made an impressive debut on the stock exchanges on Thursday, with shares listing at Rs. 1,200 per share on NSE and Rs. 1,199.95 per share on BSE.
This represents a 140% premium over the issue price of Rs. 500. The share touched a high of Rs. 1,400 in the early trade.
Market experts were already predicting a huge premium due to market optimism, which contributed to the public issue's success.
Details
IPO details and allotment
The Tata Technologies's initial public offering (IPO) was open for subscription from November 22 to November 24.
The price range was set between Rs. 475 and Rs. 500 per equity share, with a face value of Rs. 2.
The IPO lot size was established at 30 equity shares and in multiples of 30 thereafter.
The allotment was finalized on November 29, with the IPO expected to raise Rs. 3,042.51 crore at the upper end of the price range.
What Next?
The IPO was completely an offer for sale
This IPO was fully an offer for sale (OFS) of up to 60,850,278 equity shares for cash.
The goal of the offer is to fulfill the selling shareholders' offer to sell the equity shares and benefit from listing the equity shares on stock exchanges.
The company also expects that the proposed listing will enhance its brand recognition and visibility and establish an Indian public market for its equity shares.
Insights
The IPO received bids worth Rs. 1 lakh crore
The IPO was subscribed 69.43 times on the final day of bidding on November 24.
The retail investors portion was subscribed 16.50 times, the NII portion was subscribed 62.11 times, and the Qualified Institutional Buyers (QIB) portion was booked 203.41 times.
The employee portion was subscribed 3.70 times, and the portion reserved for shareholders was booked 29.19 times.
The issue received bids for 312.63 crore shares, worth over Rs. 1 lakh crore, against an issue size of 4.5 crore.