Tata Technologies, has set the price range for its initial public offering (IPO). The price band for the IPO is set at Rs 475-500 per share and it aims to raise Rs 3,042 crore.
The IPO will be open for public subscription from 22 November to 24 November. Prior to that, the anchor book of the offer will be open for a day on 21 November.
This IPO is significant as it marks the first share sale by any company from the Tata Group in nearly two decades. The last IPO from the group was Tata Consultancy Services in 2004.
The IPO is an offer for sale (OFS) of 6.08 crore equity shares. Tata Motors will sell an 11.4 per cent stake, Alpha TC Holdings will sell 2.4 per cent stake and Tata Capital Growth Fund I will sell 1.2 per cent of their shareholding.
As per media reports, the issue is expected to raise Rs 2,890.4 crore to Rs 3,042.5 crore at the lower and upper end of the price band respectively. The post-issue market capitalisation is estimated to be between Rs 19,269 crore and Rs 20,283 crore.
The IPO allocation is as follows: 50 per cent of the issue size is reserved for qualified institutional investors, 35 per cent for retail investors and the remaining 15 from for non-institutional investors.
Investors can bid for a minimum of 35 equity shares and in multiples thereof.
In a recent development, Tata Motors entered into an agreement to sell a 9.9 per cent stake in Tata Technologies to TPG Rise Climate for Rs 1,613.7 crore.
JM Financial, Citigroup Global Markets and BofA Securities are the book-running lead managers for the IPO. The equity shares of Tata Technologies will be listed on the BSE and NSE on 5 December.
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