After a bumper subscription of 69.43 times on the final day of the initial public offer (IPO) on Friday, the grey market premium (GMP) of Tata Technologies increased to Rs 412, suggesting a listing gain of 82 per cent over the issue price of Rs 500.
The grey market is an unofficial over-the-counter market where the buying and selling of IPO shares happen without the involvement of stock exchanges, and hence the GMP is subject to rapid changes.
The grey market is highly bullish on Tata Technologies as the investors have shown much interest in the IPO. The IPO was fully subscribed within minutes of opening for bidding on Wednesday. According to a Mint report, ahead of the IPO opening on Wednesday, the GMP was Rs 340.
On Saturday, Tata Motors said Tata Technologies finalised the offer price at Rs 500 per equity share. "...Tata Technologies Ltd in consultation with book running lead managers to the IPO, has finalised the offer price, including the anchor investor offer price, at Rs 500 per equity share of face value of Rs 2 each," Tata Motors said in a regulatory filing.
The Tata Technologies shares are likely to be allotted on November 28, and the listing on NSE and BSE is expected to happen on November 30.
Tata Technologies, which provides engineering and product development digital services, is the first company from the Tata Group to float an initial public offer in nearly 20 years.
