Tata Technologies IPO: Should You Apply?

livemint.com:

most anticipated initial public offerings (IPOs) of 2023 is finally here. Tata Technologies IPO, a wholly-owned subsidiary of Tata Motors, plans to offer 23.6% of its paid-up share capital currently held by Tata Motors, Alpha TC Holdings, and Tata Capital Growth Fund I. It is set to launch its IPO on Wednesday next week, November 22.

In our previous editorial, we mentioned that we’ll do a deep dive into the company’s valuations as the price band was not announced. Now that all the offer details are out, continue reading towards the end to find out whether the valuations are justified. But before that, let’s look at the offer details once again.

Issue period: 22 November 2023 to 24 November 2023 IPO Size: ₹30 billion Price band: ₹475 to ₹500 per equity share Face Value:  ₹2 Bid lot: 30 equity shares and in multiples of 30 equity shares thereafter The last we checked, Tata Technologies shares were trading at a premium of ₹298 in the grey market, indicating strong investor demand. However, it is important to remember that grey market premiums (GMPs) are solely an indication of the company's stock standing in the unlisted market and tend to change swiftly. Tata Technologies is not your average tech company.

It is a global engineering services firm that specializes in innovative product development and digital solutions. The company caters primarily to international automobile original equipment manufacturers (OEMs) and their key suppliers (ancillaries). It also serves the aerospace and industrial heavy machinery industries as well.

Here it has a well-diversified client base across the world. A large chunk of the revenue comes from clients in India. According to the numbers reported in the financial year 2022, India accounted