Tata Technologies IPO Allotment Status

Tata Technologies Ltd IPO Structure

The IPO of Tata Technologies Ltd opened for subscription on 22nd November 2023 and closed on 24th November 2023. The stock of Tata Technologies Ltd has a face value of ₹2 per share and the price band for the book building IPO has been set in the band of ₹475 to ₹500 per share. The final price will be discovered within this band. The IPO of Tata Technologies Ltd will be purely an offer for sale (OFS), with no fresh issue component to it. As you would be aware, an OFS is just a transfer of ownership and does not entail dilution of equity or of EPS. The offer for sale (OFS) portion of the IPO of Tata Technologies Ltd comprises the sale of 6,08,50,278 shares (608.50 lakh shares), which at the upper price band of ₹500 per share will translate into an offer for sale (OFS) size of ₹3,042.51 crore. There are only 3 sellers in the OFS.

The OFS selling will be by 1 promoter shareholder of the company and 2 investor shareholders. Out of the 608.50 lakh shares offered in the OFS, the promoter shareholder (Tata Motors) will offer 462.75 lakh shares while the investor shareholders comprising of Alpha TC Holdings (97.17 lakh shares) and Tata Capital Growth Fund I (48.58 lakh shares). Since there is no fresh issue component, the overall of Tata Technologies IPO will comprise of the issue and sale of 6,08,50,278 shares (608.50 lakh shares approximately), which at the upper price band of ₹500 per share will translate into total IPO issue size of ₹3,042.51 crore. 

Subscription update for Tata Technologies Ltd IPO?

The entire IPO of Tata Technologies Ltd is an offer for sale (OFS), so there would be no fresh funds coming into the company. There were total of 3 shareholders offering shares in the IPO of which two were investor shareholders and one was the promoter shareholder (Tata Motors Ltd). The IPO will be lead managed by JM Financial, Citigroup Global Markets and BOFA Securities. Link Intime India Private Ltd will be the registrar to the issue.

The IPO of Tata Technologies Ltd  was overall subscribed 69.43 times, with the maximum subscription coming from the QIB portion, which got subscribed 203.41 times. While the HNI / NII segment got subscribed at a healthy clip of 62.11 times, the retail portion got subscribed at a relative attractive clip of 16.50 times. Even the employee IPO quota was subscribed  3.70 times. Most of the QIB subscriptions came in on last day of IPO, which is the norm. The IPO was open for a period of 3 days in total.

When will the basis of allotment be finalized

The first step for checking the allotment status of the IPO online is the completion of the basis of allotment of Tata Technologies Ltd . The basis of allotment will be finalized late on 30th November 2023. The refunds will be initiated by the company on 01st December 2023. The demat credits are expected to also happen on 04th December 2023 while the listing of the stock on the NSE and the BSE will happen on 05th December 2023. In between there is a weekend and a holiday so the allotment status gets delayed by a couple of days. However, it looks like the companies are keen to adhere to the new SEBI norm of T+3 listing. That is voluntary as of now but will become mandatory as of the start of December 2023, so most IPO issuers are getting fully prepared for the new system. The adherence has been much more robust among the SME IPOs.

If you have applied for the IPO, you can check your allotment status online.  You can either check your allotment status on the BSE website or the IPO registrar, Link Intime India Private Limited. Here are the steps.

Checking the allotment status of Tata Technologies Ltd  on BSE website

This is a facility available to all mainboard IPOs, irrespective of who the registrar to the issue is. You can still access the allotment status on the website of BSE India as under. Visit the BSE link for the IPO allotment by clicking on the link below. 

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.
    • Under Issue Type – Select Equity Option
    • Under Issue Name – Select Tata Technologies Ltd  from the drop down box
    • Enter the Application Number exactly as in the acknowledgement slip
    • Enter the PAN (10-digit alphanumeric) number
    • Once this is done, you need to click on the Captcha to verify that you are not a robot
    • Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters.

The allotment status will be displayed on the screen in front of you informing about the number of shares of Tata Technologies Ltd  allotted into your demat account. It is always advisable to save a screenshot of the allotment status output for subsequently verifying with the demat account credits on or after 04th December 2023.

Checking the allotment status of Tata Technologies Ltd  on Link Intime India Private Limited (Registrar to the IPO)

Here are the steps to follow. Visit the Link Intime registrar website for IPO status by clicking on the link below:

https://linkintime.co.in/IPO/public-issues.html

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there also a way to access this page via the home page of Link Intime India Private Ltd by clicking on the Public Issues link displayed prominently on the home page. It all works the same.

This dropdown will only show the active IPOs, so once the allotment status is finalized, you can select Tata Technologies Ltd  from the drop-down box. In the case of Tata Technologies Ltd , data access will be allowed late on 30th of November 2023 or by middle of 01st of December 2023. 

• There are 4 options available to you and you will find these 4 options on the above access page itself. You can either access the allotment status based on PAN or Application Number or DPID / Client ID combination or based on the combination of the bank account / IFSC code used to apply for the IPO. You can select any one of the options that is preferred and provide the details accordingly.

• If you opt for the PAN Number access, then enter the 10 character income tax permanent account number (PAN). This is an alphanumeric code available either on your PAN card or on top of your income tax return.

• The second option is to use the Application Number that you used while making an application for the IPO. The application number is available on the acknowledgement provided to you and you can use that as one of the options to access allotment status.

• The third option is to use the DPID-Client ID combination. Remember that here you have to enter the DP id and the demat client id together as one single string. This DPID / Client ID combination is a numeric figure for CDSL demat accounts while it is an alphanumeric string for NSDL demat accounts. This combination of DP ID / Client ID of your demat account will be available in your demat statement or you can also get it online from your online trading account or trading app downloaded on the smart phone.

• The fourth option is to query based on the combination of your bank account number and IFSC number and irrespective of how many bank accounts you have, only use the bank account used for this particular IPO application. Once you click on this option, you find two boxes. First, enter your bank account number as it is. Secondly, enter the 11-character IFSC code, which is available on your cheque book. The first 4 characters of the IFSC code are alphabets and the last 7 characters are numeric. IFSC is an abbreviation for Indian Financial System Code and is unique to each account.

• Finally, click on the Search button

The IPO status with number of shares of Tata Technologies Ltd  allotted will be displayed on the screen in front of you. You can take a screenshot of the output page for your records. The same can be verified with the demat account on 04th December 2023 or after that. The stock is expected to list on 05th December 2023. The only question now is, what determines chances of allocation in the IPO? It boils down to allocation quota and subscription levels.
Allocation quota and subscription levels for Tata Technologies Ltd 

The table below captures the quota allocated to various categories, in terms of the number of shares and also the percentage of the total share capital raised. For investors it is the quota for the retail and the HNI that really matters.

The next thing to look at is the extent of subscription. The table below captures the extent of oversubscription for each of the categories as well as the overall subscription for Tata Technologies Ltd .

Data Source: BSE

The response to the IPO of Tata Technologies Ltd  was strong overall, although it was only modestly strong for the retail portion. The retail subscription of 16.50 times does give a lower opportunity to get allotment in the IPO. However, it must be remembered that under the extant SEBI norms on retail IPO allotment, the emphasis must be to allot the basic lot size to as many unique investors as possible. The actual status can be checked using the allotment checking modus operandi explained above. You just need to wait for the basis of allotment to be finalized.