India's Tata Technologies shines in busy week for IPOs
Technology
India's Tata Technologies shines in busy week for IPOs
BENGALURU (Reuters) - India's Tata Technologies' 30.43 billion-rupee ($366 million) initial public offering on Wednesday was oversubscribed more than the other four IPOs this week, signalling strong demand for the Tata Group's first public float in nearly two decades.
Tata Technologies, which provides engineering and technology services to auto, aero and heavy machinery makers, will be valued at 202.83 billion rupees at the top end of the price band of 475-500 rupees.
Investors bid for about 294.4 million shares - worth about 147.19 billion rupees ($1.77 billion) - by the end of the first day of bids. This was roughly 6.54 times the issue on offer, stock exchange data showed.
The other IPOs launched this week were from Fedbank Financial Services, Flair Writing Industries, Indian Renewable Energy Development Agency and Gandhar Oil Refinery. They have been oversubscribed between 0.38-5.52 times so far.
Investor focus, however, is on Tata Technologies as it is the first Tata group company to go public since Tata Consultancy Services (TCS.NS) in 2004.
"Everybody wants to have a share of the pie" of the "most-hyped issue this week," said Arun Kejriwal, founder of Kejriwal Research and Investment Services. "However, ... the offering is not very large."
India has had 194 IPOs so far this year, smashing records for the most number of offerings at home and globally, at a time when the domestic equity market has surged to all-time highs on economic growth prospects and a vast consumer base, making it an attractive destination for companies and investors.
Tata Technologies' stakeholders, including parent Tata Motors (TAMO.NS), are selling shares worth up to 30.43 billion rupees in the IPO. The company is not issuing fresh shares.
The IPO will close for bids on Friday and the company will make its trading debut on Nov. 30.
