The minimum lot size for investment is 30 shares, which means minimum application amount for retail investors will be ₹15,000 and ₹195,000 for 13 lots (390 shares).   

Given the attractive valuation and robust demand for the IPO as indicated by strong grey market premium (GMP), Tata Tech is likely to smash technology giant Tata Consultancy Services’ (TCS) IPO records on the first day of its opening. TCS came out with its IPO in the month of July 2004, with the price band of ₹775-900 per share, which was subscribed seven times. The TCS shares got listed on August 25, 2004, at a premium of 26.6% at ₹ 1,076 apiece.

On the other hand, Tata Technologies has set price band at ₹475-500 per share for its public offer, which is completely an offer for sale (OFS) by existing shareholders. Tata Tech shares are currently trading at a 71% premium in the grey market, an unofficial market where shares can be bought and sold before they are listed on a stock exchange. Today, the grey market premium (GMP) was ₹355, unchanged from yesterday’s GMP of ₹355, indicating listing price to be around ₹858. The shares of Pune-based company are slated to be listed on the BSE and NSE on December 5.

According to market analysts, the IPO is coming at a very attractive valuation of 32.5x, and it’s a great opportunity for investors to encash listing gains as well as for long-term benefits.

Most analysts have recommended “subscribe” to the issue, citing its deep expertise in the automotive industry, well-recognised brand with experienced promoters, as well as healthy financial performance.