Tata Technologies Ltd. has set a price band in Rs 475-500 range for its highly-anticipated initial public offering, ascribing it a post-offering market capitalisation of up to Rs 20,000 crore.
The Nov. 22-24 IPO, a first from the Tata stable in nearly two decades, is a pure offer-for-sale of 60,850,278 shares of face value Rs 2 apiece by parent Tata Motors Ltd. (46,275,000), and investors Alpha TC Holdings Pte Ltd. (9,716,853) and Tata Capital Growth Fund I (4,858,425 ), equivalent to 11.41%, 2.40% and 1.20% stake, respectively.
A portion of the offering, about 10%, is reserved for the employees of Tata Technologies and shareholders of Tata Motors. While qualified institutional buyers can bid for 50% of the net offer, 15% of the Rs 3,000-crore IPO is reserved for non-institutional investors. The rest, about 35%, is for retail investors.
At the upper end of the price band, the ER&D company will end of raising a little over Rs 3,000 crore at a post-issue implied market cap in excess of Rs 20,000 crore, according to a notice put out on Thursday.
The bid lot size is set at 30 shares and multiples there of.
JM Financial Ltd., Citigroup Global Markets India Pvt. and BofA Securities India Ltd. are the book-running lead managers for the issue.