Tata Tech IPO subscribed 6.5x on Day 1 Investors made a beeline for Tata Technologies’ initial public offering (IPO) on Wednesday, the first day of subscription, with the issue being fully subscribed within the first hour. The Rs 3,042-crore IPO — the first public issue of a Tata group firm in over 20 years — saw a subscription of 6.54x on the first day. The price band for the offer, which closes on November 24, has been fixed at Rs 475-500 a share. Among others, the portion reserved for employees of Tata Technologies was booked 1.1x, while that reserved for shareholders of Tata Motors was subscribed 9.3x. Reports said there was a strong demand in the grey market, with shares trading at a 70% premium over the upper price band thanks to the healthy performance of the firm in the past years and strong industry growth prospects, besides the Tata brand name. On Tuesday, the company had raised raised Rs 791 crore from anchor investors. Most brokerages have given a thumbs-up to the issue and have recommend a ‘buy’, thanks to its encouraging prospects. According to a note by Motilal Oswal, the global rngineering research and development (ER&D) spend is expected to grow 10% CAGR to $2.7 trillion by 2026, with third party outsourcing expected to grow faster at 14-17% for Indian entities. The largest ER&D vertical — automotive — is seen growing at 7% CAGR by 2026 to $27-29 billion, led by disruption in the automotive industry thanks to autonomous, connected, electrification, and shared mobility, it added.
The move had also prompted the country’s largest organised retailer Reliance Retail to step into the value retail segment with Yousta, which was announced on Thursday. Like Intune, Yousta began its operations in Hyderabad, with plans to expand across the country. Intune has three stores – two in Hyderabad and one in Dombivli, near Mumbai, with plans to add another three more outlets in the coming months.
Nair had admitted on a recent earnings call that the apparel segment in general was witnessing moderation and that the value retail foray by Shoppers Stop could help the company tap into the growing trend for affordable fashion and lifestyle products, aiding sales growth.
That was an important statement for Shoppers Stop, which reported a nearly 37% year-on-year drop in net profit to Rs 14.5 crore in the June quarter of FY24, even as revenue grew only 4.8% versus the previous year to nearly Rs 994 crore.
On a yearly basis, the company had last reported a net profit of nearly Rs 114 crore in FY23 after three consecutive years of loss between FY20 and FY22 due to the Covid-19 pandemic. FY23 topline also jumped nearly 60% year-on-year to Rs 4,022 crore, the highest in six years, its results showed.