Upcoming IPO - Tata Technologies Limited

[Yasir_Memon]

About Company’s Business:

The company is a prominent global engineering services provider that specializes in offering product development and digital solutions, including turnkey solutions, to original equipment manufacturers and their Tier 1 suppliers worldwide, as noted in the Zinnov Report. With a rich history spanning over two decades, the company possesses extensive domain expertise in the automotive industry. This expertise is applied not only in serving clients within the automotive sector but also extends to adjacent industries such as aerospace, transportation, and construction heavy machinery (“TCHM”). The company employs a globally distributed execution model, effectively utilizing the skills and capabilities of its worldwide workforce. This approach ensures a strategic balance between onshore client proximity and offshore efficiency, ultimately delivering enhanced value to its clients.

About the Industry:

We operate in the global engineering, research and development (“ER&D”) services industry, primarily across automotive, aerospace and TCHM verticals. The global ER&D spend for 2022 was approximately $1.81 trillion and is expected to grow to approximately $2.67 trillion by 2026. The ER&D spend outsourced to third party service providers reached $105-$110 billion in 2022 and is anticipated to grow at a 11-13% CAGR between 2022 and 2026. The key growth drivers within the ER&D market include an increasing propensity to outsource, increasing regulatory interventions for safer and cleaner products, shrinking product innovation cycles and next-generation product technologies.

Here is the tabulated data with values in ₹ million:

Particulars	As of Sep 30, 2023	As of Sep 30, 2022	As of Mar 31, 2023	As of Mar 31, 2022	As of Mar 31, 2021
Equity Share Capital (₹)#	811.34	405.67	811.34	418.07	418.07
Net Worth (₹)	28,531.27	24,818.84	29,894.71	22,801.61	21,421.54
Total Income (₹)	25,874.24	19,103.90	45,019.29	35,783.82	24,257.38
Profit for the Period/Year (₹)	3,519.01	2,590.61	6,240.37	4,369.91	2,391.73
Basic Earnings per Equity Share (₹)$	8.67@	6.39@	15.38	10.77	5.89
Diluted Earnings per Equity Share (₹)$	8.67@	6.39@	15.37	10.77	5.89
Return on Net Worth (%)	12.33@	10.44@	20.87	19.16	11.17
Net Asset Value per Equity Share (Basic) (₹)	70.33	61.18	73.68	56.19	52.79
Net Asset Value per Equity Share (Diluted) (₹)	70.27	61.18	73.65	56.19	52.79
Total Borrowings (as per balance sheet)	-	-	-	-	-

Note:

“#” indicates the face value of ₹ 2 each for Equity Share Capital.
“$” indicates figures related to earnings per equity share that may have rounding or other clarifications (indicated by “@”).

Objective of the Issue:

1. Achieve the benefits of listing the Equity Shares on the Stock Exchanges

2. Carry out the Offer for Sale of up to 60,850,278 Equity Shares by the Selling Shareholders

3. General corporate purposes.

For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.

Important information regarding the IPO
Open Date	Wednesday, November 22, 2023
Close Date	Friday, November 24, 2023
Issue Size	₹3,042.51 Crores
Price	₹475 to ₹500 per share
Lot Size	30 Shares
Basis of Allotment	Thursday, November 30, 2023
Initiation of Refunds	Friday, December 1, 2023
Credit of Shares to Demat	Monday, December 4, 2023
Listing Date	Tuesday, December 5, 2023

How to apply for this IPO?

You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.

Quick Apply for the IPO here!

Do let us know your thoughts on this IPO.

[iamshrimohan]

Some of the FAQs regarding Tata Technologies IPO:

1. What are the various categories in which the IPO application can be done?
Application in the IPO can be done under the following categories each having minimum and maximum as shown below

Category	Min Lot(s)	Min Investment (₹)	Max Lot(s)	Max Investment (₹)
Retail	1	15,000	13	1,95,000
Employee	1	15,000	33	4,95,000
Shareholder	1	15,000	13	1,95,000
HNI (Small)	14	2,10,000	66	9,90,000
HNI (Big)	67	10,05,000	No Limit	No Limit

2. I am a shareholder of Tata Motors or Tata Motors DVR, how can I participate in the IPO?
If you had shares of Tata Motors or Tata Motors DVR as on 13th November 2023, you are eligible for Shareholder’s category. However, you can apply in the Retail / HNI (Small) / HNI (Big) category as well.

3. I purchased shares of Tata Motors or Tata Motors DVR on 13th November, will I be entitled as eligible shareholder?
No. as we follow T+1 settlement, the shares will get credited to your Demat account on the next settlement day and hence as on 13th November 2023, you will not be qualified to apply under eligible Shareholder’s category.

4. I wish to apply for Shareholder’s Reserve Portion as well as Retail / HNI (Small) / HNI (Big). How can the application be made using Dhan?
Yes, you can apply for both Shareholders Reserve Potion and Retail / HNI (Small). You will be able to see two entries of Tata Technologies IPO - Tata Technologies and Tata Technologies (TML Shareholders) in the “Open Now” section of the IPO once the IPO is live for bidding. Note that since we process IPO applications via UPI, the maximum bidding amount can be upto ₹5,00,000 and hence you can bid for a maximum of 33 lots. In case you want to bid for more, you can use your Dhan BOID and make an application using your Bank’s Netbanking ASBA. In case you get the allotment, you will get the credit of those shares in your Dhan account.

5. How are shares allotted in the Shareholder’s Reserve Portion incase of under-subscription and oversubscription?
In case of under-subscription in this category, full allocation shall be made to the eligible bidders to the extent of their demand. In case of over-subscription, the allocation shall be made on a proportionate basis.

6. I hold shares of Tata Motors or Tata Motors DVR in my HUF account and I am the Karta, will I as an individual be considered as an eligible shareholder?
No. HUF by definition is a separate entity. Hence, if HUF is the shareholder, the benefit of the same is restricted to the HUF as an entity and not Karta.

7. I hold shares of Tata Motors or Tata Motors DVR in my HUF account but the Bank has not provided UPI for my HUF Bank account. How can I apply for the IPO? Can I use Karta’s personal UPI to make the payment?
Banks generally do not provide UPI for HUF type Accounts. So technically IPO applications via UPI for HUF accounts cannot be processed. If you pay via your Karta’s UPI for an IPO, it is most likely to be cancelled, so avoid doing this. You can use your HUF’s Dhan BOID and make an application using your Bank’s Netbanking ASBA. In case you get the allotment, you will get the credit of those shares in your HUF’s Dhan account.

8. I sold the shares of Tata Motors or Tata Motors DVR on 13th November 2023, am I still eligible for Shareholder’s category?
Yes. Since the Pay-IN of shares occurs on T+1 day, you will be qualified as an eligible shareholder of Tata Motors or Tata Motors DVR as on the End of Day of 13th November 2023.

9. I am an employee of Tata Motors Limited, can I bid under the Employee Category using Dhan App?
No, this is not yet possible. In case you want to bid under employee category, you can use your Dhan BOID and make an application using your Bank’s Netbanking ASBA. In case you get the allotment, you will get the credit of those shares in your Dhan account.

10. I am an employee of Tata Motors Limited, can I bid in the Retail or HNI portion?
Yes. If you are an employee of Tata Motors Limited, you can apply in the Employee Reservation Portion and also in the Retail / HNI (Small) / HNI (Big) category as well. Note that an eligible employee can bid up to ₹4,95,000, it will be processed under two tranches. In the first instance, a bid amount up to ₹1,95,000 shall be considered and the balance shall be considered only in case of under-subscription in the employee reservation portion.

11. I am an employee of Tata Motors but I am holding a joint Demat account which I am intending to use for the IPO. Can I still participate as in the Employee Reservation Portion?
Yes. To participate in the employee reservation portion, the First Bidder (in case of joint bids) shall be an Eligible Employee. The other bidders could be anyone.

For more details, please refer to the DRHP.

[amish]

Just a minor clarification required. You may add this in above FAQ.

To apply for Shareholder quota, is it compulsory to have atleast 1 share of Tata motors in DHAN DEMAT account?

Or it can be in any other (non-Dhan) DP account.

[shraddha]

The IPO got fully subscribed in just 1 hour

[iamshrimohan]

@amish No, it can be from any DP account. The RTA maintains data of the share-holding via PAN Mapping.

[shraddha]

What a listing for Tata Technologies!

[RahulDeshpande]

Did you get the allotment today?

• Yes : 160% premium listing
• No, just like everyone

[iamshrimohan]

Did You Know?

Tata Technologies was a hot selling share in the unlisted market and was easily available at Rs. 350-400. A marvellous listing!

For those who did not got any allotment, stay tuned. Tata Capital could possibly file for an IPO soon