IGI Logo

India's Tata Technologies' 30.43 billion-rupee ($366 million) initial public offering was oversubscribed on Wednesday, more than the other four IPOs this week, signaling strong demand for the Tata Group's first public float in nearly two decades.

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 of 475-500 rupees.

Investors bid for more than 189 million shares, roughly 4.20 times what was on offer, stock exchange data showed, totaling to bids worth 94.56 billion rupees as of 2:00 p.m. IST.

The other IPOs launched this week were from Fedbank Financial Services, Flair Writing Industries, Indian Renewable Energy Development Agency and Gandhar Oil Refinery and have been oversubscribed 0.28-3.79 times so far. All the IPOs will close for bids on Friday.

The focus is on Tata Technologies since it is the first Tata group company to go public since Tata Consultancy Services in 2004.

"This was to be the most hyped issue this week as it is coming from the Tata Group after twenty years," said Arun Kejriwal, founder of Kejriwal Research and Investment Services.

"Everybody wants to have a share in the pie. However, ... the offering is not very large."

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.

Tata Technologies' stakeholders, including parent Tata Motors, are selling shares worth up to 30.43 billion rupees in the IPO.