Tata Technologies raises ₹791 crore from anchor investors ahead of its IPO
₹791 crore from 67 investors via anchor book on Tuesday, November 21, a day before its initial public offering (IPO) opens for bidding. The funds were raised at the upper limit of the ₹475-500 price range. Tata Technologies IPO, which will be the first public offer from Tata Group company in almost 20 years, will open for bidding on November 22 and will close on November 24.
"Tata Technologies in consultation with the book running lead managers has finalised allocation of 1,58,21,071 equity shares to anchor investors, at a price of ₹500 per share," the company said in its filing to exchanges. The Tata group company has fixed Tata Technologies IPO price band at ₹475 to ₹500 per share levels. Tata Technologies Ltd aims to raise ₹3,042.51 crore from this initial offer, which is completely offer for sale (OFS) in nature.
The company has set aside 20.28 lakh equity shares for its employees and 60.85 lakh for Tata Motors shareholders. The net issue of the IPO, excluding the portions allocated to employees and shareholders, constitutes the overall offering. Fifty percent of the total offer size has been allocated to qualified institutional buyers, while 15 percent is earmarked for high net worth individuals.
The remaining 35 percent is set aside for retail investors. According to market analysts, Tata Technologies IPO shares were trading at a significant 70 percent premium in the grey market above the upper price band. The grey market serves as an informal platform for trading IPO shares until their official listing.
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