Unlisted shares of Tata Technologies are indicating strong listing gains and are trading Rs 414 higher in the grey market, which is an 82.8 per cent listing gain or GMP from the public issue
Tata Technologies IPO: Even as Tata Technologies has finalised the price at Rs 500 per equity share for its initial public offering (IPO), the company’s unlisted shares are trading at a premium or GMP of around 82.8 per cent in the grey market. The company’s listing is likely to take place on December 5 on the BSE and NSE.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price. It also indicates how much gains investors are going to make on the listing day. The GMP is based on market sentiments and keeps changing.
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Tata Technologies IPO GMP Today
According to market observers, unlisted shares of Tata Technologies are indicating strong listing gains and are trading Rs 414 higher in the grey market as compared with its issue price. The Rs 408 grey market premium or GMP means the grey market is expecting an 82.8 per cent listing gain from the public issue.
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Tata Technologies IPO Subscription
Tata Technologies IPO was opened for public subscription between November 22 and November 24, and received a whopping 69.43 times subscription. The price range for the offer was fixed at Rs 475-500 a share, which has now been finalised at Rs 500.
The Rs 3,042.5-crore initial public offering received bids for 3,12,64,91,040 shares against 4,50,29,207 shares on offer. The category for qualified institutional buyers (QIBs) was subscribed a mammoth 203.41 times, while the part meant for non-institutional investors attracted 62.11 times subscription. The quota for retail individual investors (RIIs) was subscribed 16.50 times.
Tata Technologies IPO Details
Tata Technologies is the first company from the Tata Group to float an IPO in nearly two decades. Tata Consultancy Services was the last IPO from the group in 2004.
At Rs 500 issue price, the size of the IPO aggregates to Rs 3,042,51 crore comprising an offer for sale of 4.63 crore equity shares by Tata Motors amounting to Rs 2,313.75 crore, 97.17 lakh equity shares by Alpha TC Holdings Pte Ltd amounting to Rs 485.84 crore and 48.58 lakh equity shares by Tata Capital Growth Fund I, amounting to Rs 242.92 crore, subject to finalisation of basis of allotment.
