Tata Motors Ltd., parent company of Dalal Street-bound Tata Technologies has managed to raise ₹2,313 crore post the sale of shares during the company's initial public offering (IPO).

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An exchange filing by the auto company said that it planned on selling 4.62 crore shares of Tata Technologies during its IPO, which was a pure Offer for Sale (OFS). Tata Technologies sold shares in its IPO at ₹500 apiece.

The three-day issue of Tata Technologies was subscribed nearly 70 times.

Post the share sale, Tata Motors' stake in Tata Technologies is now down to 53.39% from 64.79% earlier. Before the IPO, the parent company had also sold a 9.9% stake in Tata Technologies to TPG at an equity valuation of ₹16,300 crore.

The first Tata Group IPO in two decades received bids worth ₹1.56 lakh crore for an offer size of just over ₹3,000 crore.

The portion reserved for Qualified Institutional Bidders (QIB) was subscribed 203.41 times, while that reserved for Non-Institutional Investors was subscribed 62.11 times.

Tata Technologies' portion for retail investors saw 16.5 times subscription, while those reserved for shareholders of Tata Motors were subscribed over 29.19 times.

Tata Technologies will be listed on the bourses on Thursday, November 30. Axis Capital pegs the post-issue market cap between ₹19,269 crore and ₹20,283 crore.

Shares of Tata Technologies in the unlisted market are in heavy demand and the grey market premium (GMP) stood at ₹392, according to reports.

It is important to note that GMPs are just an indicator of how the company's shares are stacked up in the unlisted market and are subject to change rapidly.

First Published:Nov 29, 2023 8:45 AM IST