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India’s Tata Technologies’ IPO garners bids worth over $18 bln

Photo: Tata
Photo: Tata

Tata Technologies‘ initial public offering (IPO) of 30.43 billion rupees ($366 million) remained the most oversubscribed domestic IPO this week, which indicates healthy demand for the Tata group’s first public float in over two decades.

As of the conclusion of subscriptions on Friday, investors have placed bids for around 3.13 billion shares worth 1.56 trillion rupees ($18.74 billion), compared to the 45 million shares available for purchase. Institutional investors showed the most significant level of interest.

According to the statistics from the stock market, the number of bids was about 69.43 times that of the issue being offered.

“The oversubscriptions, even though the size is not very large, are a positive factor, and this shows that if an issue is well priced, leaving something on the table, investors are willing to invest,” said Arun Kejriwal, founder of Kejriwal Research and Investment Services. “The oversubscriptions, even though the size is not very large, are a positive factor, and this shows that if an issue is well priced, leaving something on the table, investors are willing to invest.”

This is the first initial public offering (IPO) for a firm affiliated with the Tata group since Tata Consultancy Services (TCS.NS) in 2004. On November 30th, the firm will begin trading publicly for the first time.

At the high end of its pricing range, between 475 and 500 rupees, the worth of Tata Technologies, which offers engineering and technology services to manufacturers of automobiles, aircraft, and heavy machinery, will be calculated to be 202.83 billion rupees.

Other listings published this week were those for Fedbank Financial Services, Flair Writing Industries, the Indian Renewable Energy Development Agency, and Gandhar Oil Refinery. They had between 2.20 and 64.07 times the average number of subscribers.

In 2023, there will be 196 initial public offerings (IPOs) in India, which is a record both inside India and when compared to any other country. This year, the local stock market has reached new highs, breaking previous records, thanks to India’s strong economic development prospects and enormous customer base, making the country an appealing location for businesses and investors.

Kejriwal anticipates that this forward motion will carry over into the upcoming months.

“There appears to be a demand for initial public offerings (IPOs), and there are many of them in the works. There is cash available. He continued that there is no need for alarm so long as individuals get the price correct.

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