Share of Tata technologies were trading at a premium of rs.414 in grey market today, compared to its issue price of rs.500 a share. The statement suggest that the premium (higher price) observed in the unlisted market implies a potential increase of over 80% when the stock is eventually listed on the stock exchange. This could indicate strong investor anticipation and demand for the stock.

After receiving an impressive response from investors during the initial share sale, Tata Technologies, a subsidiary of Tata Motors, is anticipated to conclude the allocation basis for IPO shares today, November 28.

The three-day share sale of Tata Technologies, marking the first IPO from the Tata Group in twenty years, garnered an overwhelming response, reaching an overall subscription of 69.43 times. The bids amounted to ₹1.56 lakh crore for an issue size of ₹2,200 crore, excluding the anchor portion.

Qualified Institutional Bidders (QIB) and Non-Institutional Investors (NII) displayed notable enthusiasm, subscribing 203.41 times and 62.11 times their allotted portion, respectively. Meanwhile, the portion designated for retail investors witnessed a subscription of 16.5 times.

Tata Technologies GMP

Meanwhile, market sources report significant demand for Tata Technologies shares in the unlisted market. The grey market premium (GMP) of Tata Technologies has rebounded strongly, recovering from a marginal dip over the weekend.

As of the latest information, the company’s shares are trading at a premium of ₹414 in the grey market, contrasting with the issue price of ₹500 per share. This robust premium in the unlisted market suggests a potential listing increase of 82% for allottees.

It’s crucial to note that GMPs serve as an indicator of the standing of the company’s shares in the unlisted market and are subject to rapid changes.

About the Offer

Tata Technologies, along with three other IPOs open for public bidding, conducted its offering as a purely Offer for Sale (OFS), indicating that the company will not receive any funds from the public offer. The company aimed to raise ₹3,042.51 crore through its IPO, selling shares within a price band of ₹475-500.

In the OFS, Tata Motors divested 4.62 crore shares, Alpha TC Holdings sold 97.1 lakh shares, and Tata Capital Growth Fund also offloaded 48 lakh shares. Notably, Tata Technologies, a financially robust entity, ended the fiscal year 2023 with a cash reserve of $150 million.