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Tata Technologies, Gandhar Oil IPO subscribed 2x on Day 1 so far

Flair Writing Industries was also off to a decent start, while FedBank Financial Services witnessed sedate demand so far.

IPOs, listing, Investors, Markets

SI Reporter Mumbai

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The much-awaited Tata Technologies (Tata Tech) IPO was off to a flying start in the primary market, with the issue oversubscribed within the first one-hour itself.

As of 12:00 noon, Tata Tech's maiden share sale was subscribed up to 2.1 times, with demand seen evenly spread across segments. The Non-Institutional Investors (NIIs) segment was oversubscribed 3.2 times; followed by the retail, qualified institutional buyers (QIBs) and reserved portion for shareholders, each 2 times.

Tata Tech, a subsidiary of Tata Motors, will be raising up to Rs 2,900 crore from its maiden share sale. The entire IPO is an offer for sale, and the first share sale by a Tata Group company in nearly two decades, after TCS in 2004.

Tata Tech had raised Rs 791 crore from 67 anchor investors, including Goldman Sachs, BNP Paribas Funds and HSBC Global, ahead of the offer's opening.

Analysts said that the Tata Tech IPO was reasonably priced and the firm's long-term prospects were strong given significant room for growth in the automotive ER&D industry, where it primarily operates. Grey Market Premium indicating a listing gain of nearly 70 per cent in the run-up to the IPO. Watch Video

Gandhar Oil Refinery Rs 359 crore IPO was also fully subscribed, 1.6 times. The issue has received good response from NIIs and retail segment. The company is offering shares in the price band of Rs 160 - Rs 169.

Flair Writing Industries Rs 438 crore IPO was also off to a decent start, with retail category fully subscribed, and overall subscription at 70 per cent so far. 

FedBank Financial Services aims to raise up to Rs 783 crore. The issue was off to a sedate start, with mere 20 per cent subscription so far. 

Meanwhile, state-owned power project financier, Indian Renewable Energy Development Agency, Rs 2,100 crore IPO which opened on Tuesday was subscribed 2.9 times on Day 2 of the offer period. The NIIs portion was subscribed 4.7 times. Retail and Employee segment was subscribed 3-fold, while demand from QIBs stood at 1.4 times.


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First Published: Nov 22 2023 | 12:21 PM IST

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