IPO News 2023: Key Insights into Tata Tech’s Landmark Return & ASK Auto’s Bourse Debut

Tune into the financial pulse of India as Tata Group makes a historic comeback with Tata Technologies IPO after two decades. Entering the market on November 22, this Offer For Sale (OFS) promises to be a game-changer, echoing the success of Tata Consultancy Services (TCS) iconic IPO in 2004. Meanwhile, ASK Automotive revs up for a significant listing on November 15, creating a buzz with an anticipated 10-12% premium. Get ready for a riveting journey through the dynamic landscape of IPOs.

Tata Technologies IPO: Set to Make Waves

After nearly two decades, Tata Group is poised to make a significant splash in the primary market with the upcoming Tata Technologies IPO. Scheduled for launch on November 22, this Offer For Sale (OFS) marks a historic move since Tata Consultancy Services (TCS) went public in 2004. The group aims to offer up to 60,850,278 equity shares, representing various stakeholders, including Tata Capital Growth Fund I and Alpha TC Holdings Pte. Ltd.

Insights into Tata Technologies IPO Filing

In a recent exchange filing on November 13, Tata Technologies Limited revealed the filing of its Red Herring Prospectus (RHP) with the Registrar of Companies, Maharashtra. The IPO comprises an offer of 46,275,000 Equity Shares by the company, 9,716,853 by Alpha TC Holdings Pte. Ltd., and 4,858,425 by Tata Capital Growth Fund I. This strategic move offers 11.41%, 2.40%, and 1.20% of the paid-up Equity Share Capital, respectively.

Charting the Journey: IPO Details 

As a subsidiary of Tata Motors Limited, Tata Technologies Limited filed its Draft Red Herring Prospectus (DRHP) on March 9, 2023, with the Securities and Exchange Board of India for this IPO. The offering includes a reservation of up to 10% for eligible shareholders of Tata Motors Limited, providing an exclusive opportunity for individuals and HUFs who hold public equity shares.

IPO Opening and Closing Dates: Tata Technologies IPO Timeline

The Tata Technologies IPO subscription window opens on November 22, 2023, and concludes on November 24, 2023. 

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Tata Motors’ Financial Update

On November 2, Tata Motors reported a consolidated net profit of ₹3,783 crore for the September quarter, buoyed by the robust performance of its British arm, Jaguar Land Rover. This marks the fourth consecutive quarter of positive results for the Indian automotive giant.

ASK Automotive IPO Listing Preview

In a parallel development, ASK Automotive, an auto ancillary company, is set to list its equity shares on November 15, with an issue price fixed at Rs. 282 per share. Analysts predict a 10-12% premium, anticipating the stock to open between Rs 310-315, thanks to the strong investor response and the company’s dominance in the two-wheeler brake shoe and Advance Braking System (ABS) segment.

ASK Automotive IPO Profit: A Resounding Success

Despite being a fully priced-in offer-for-sale, ASK Automotive’s IPO witnessed an overwhelming response. The issue was oversubscribed 51.14 times, with bids reaching 105.85 crore shares against the 2.06 crore share issue size. Notably, qualified institutional buyers displayed a keen interest, subscribing 142.41 times their allotted quota. 

The promoters of the company, Kuldip Singh Rathee and Vijay Rathee, reflect the confidence in the company’s prospects.

Conclusion

With Tata Technologies’ IPO on the horizon and ASK Automotive creating ripples in the market, these developments underscore the dynamism of the Indian financial landscape. Stay tuned for more updates as these events unfold, shaping the narrative of India’s economic trajectory.

Source- livemint.com

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