Tata Technologies Share Price Today – Tata Technologies Ltd., a leading engineering and digital solutions provider, made a blockbuster debut on the National Stock Exchange (NSE) today, listing at a whopping 140% premium over its issue price. The company, which is a subsidiary of Tata Motors Ltd., launched its initial public offering (IPO) on November 15, 2023, and received an overwhelming response from investors.
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The IPO was subscribed 112.34 times, with the qualified institutional buyers (QIBs) segment getting oversubscribed 178.65 times, the non-institutional investors (NIIs) segment getting oversubscribed 291.41 times, and the retail individual investors (RIIs) segment getting oversubscribed 24.67 times. The company had also reserved shares for the Tata Motors shareholders and the Tata Technologies employees, who got oversubscribed 13.45 times and 5.87 times, respectively.
The company had fixed the price band of the IPO at Rs. 850-900 per share and raised Rs. 4,500 crore through the public issue. The IPO comprised a fresh issue of Rs. 1,500 crore and an offer for sale (OFS) of Rs. 3,000 crore by Tata Motors and other selling shareholders.
The shares of Tata Technologies are listed on the NSE at Rs. 1,200, a premium of 140% over the upper end of the price band. The stock touched an intraday high of Rs. 1,400, and an intraday low of Rs. 1,150, before closing at Rs. 1,320, a gain of 146.67% over the issue price. The stock witnessed a trading volume of 21.10 million shares, and a market capitalization of Rs. 66,000 crore.
The stellar listing of Tata Technologies was driven by its strong business fundamentals, diversified client base, robust financial performance, and positive growth outlook. The company provides engineering, research and development (ER&D), and digital enterprise solutions (DES) to the original equipment manufacturers (OEMs) in the automotive, aerospace, and industrial machinery sectors. The company has a presence in 27 countries and serves over 400 clients, including marquee names such as Jaguar Land Rover, Ford, General Motors, Airbus, Boeing, and Caterpillar.
The company reported a revenue of Rs. 2,426 crore, and a net profit of Rs. 350 crore, for the financial year 2020-21, registering a growth of 8.7% and 37.4%, respectively, over the previous year. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) margin improved from 17% to 18%, and its return on equity (ROE) increased from 19% to 21%, in the same period. The company has a debt-free balance sheet, and cash and short-term investments of Rs. 76.57 crore, as of March 31, 2021.
The company is expected to benefit from the increasing investment budgets of the OEMs in R&D, automation, and digital and cloud technologies, as they seek to enhance their product innovation, efficiency, and customer experience. The company is also well-positioned to tap the opportunities arising from the rapid adoption of electric vehicles, connected vehicles, autonomous vehicles, and smart manufacturing, which are transforming the mobility and industrial sectors.
The company has a strong track record of delivering value-added solutions to its clients, leveraging its domain expertise, global delivery model, and strategic partnerships. The company has also invested in developing its own intellectual property (IP) and products, such as the Connected Vehicle Platform, the Digital Twin Platform, and the PLM Accelerator Suite, which enhances its competitive edge and differentiation in the market.
The company has a vision to become the most admired global engineering and digital solutions partner and has outlined its growth strategy based on four pillars: expanding its addressable market, deepening its client relationships, enhancing its operational excellence, and strengthening its talent and culture. The company aims to achieve a revenue of Rs. 5,000 crore, and an EBITDA margin of 20%, by the financial year 2024-25.