India's Tata Technologies' $365 mln IPO oversubscribed within hours of first day of bids
Indian IPOs have smashed records at home and globally this year, with 194 companies offering shares so far
India's Tata Technologies' much-awaited 30.43 billion-rupee ($365.55 million) initial public offering was oversubscribed within hours after bidding opened on Wednesday(22 November), signalling strong demand for the Tata Group's first public float in nearly two decades.
At the top-end of the price band of 475-500 rupees, Tata Technologies garnered bids worth 65.15 billion rupees ($782.64 million), as of Wednesday afternoon.
Investors oversubscribed the IPO by 2.89 times as they bid for more than 130.3 million shares compared with the 45 million shares on offer, data from the stock exchange showed.
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Indian IPOs have smashed records at home and globally this year, with 194 companies offering shares so far, 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.
The IPO has stakeholders, including parent Tata Motors, offering shares worth up to 30.43 billion rupees for sale, while Tata Technologies will not issue any fresh shares, according to its prospectus.
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.
The IPO will close for bids on Friday and the company is expected to make its trading debut on 30 November.
