If you are someone who believes in saving to ensure that you have enough capital for present and future expenses, investing in the stock market can prove to be fruitful. The stock market contains numerous investment instruments that have the ability to provide good returns by increasing the invested capital in its value. Among numerous investment instruments, one of the most invested for the highest returns is equities.
Equities are shares of companies that are listed on the stock exchanges, where investors can buy and sell them to make profits. For example, you can buy shares of a company currently trading at Rs 100 and sell them when the share prices increase to make a profit. However, all the companies trading on the stock exchanges were once private companies or subsidiaries and offered their shares for the first time to the general public for listing on the stock exchanges on a particular day.
Imagine if you could have bought the shares of Dmart before it got listed on the stock exchanges at Rs 299, which are now trading at Rs 3,800. Well, one of the best ways to make good and quick profits is to invest in a company’s shares during the time it offers its shares for the first time.
Currently, Tata Technologies and the Indian Renewable Energy Development Agency have floated their IPO, which will go live in a few days. This blog will help you understand the technicalities of both the IPOs to help you make an informed decision.
Tata Technologies Limited is a subsidiary of Tata Group and was incorporated in the year 1994. It is a leading global engineering services company offering digital and product development solutions. The company uses its deep manufacturing knowledge and expertise in turnkey product development to help its customers develop safe, sustainable products and deliver great customer experience.
IREDA is a public limited company considered a Mini Ratna (Category - I) government enterprise, incorporated in 1987. It is a leading financial institution that promotes, develops, and extends assistance for new and renewable energy projects. For the last 36 years, IREDA has been providing comprehensive financial products and related services for renewable energy projects to various green energy companies.
Tata Technologies IPO will open from 22 November to 24 November, and share allotment will be finalised on Thursday, 30 November 2023. Refunds will be initiated on 1 December 2023, and the shares will be credited to the demat account on 4 December 2023. The shares will be listed on NSE and BSE on 5 December 2023.
Tata Technologies Limited has set the price band for the IPO between Rs 475-500 per share. The face value for each share is Rs 2, and the lot size is 30 shares. The book-built issue is of Rs 3,042.51 crores. The issue is entirely an offer for sale of 6.09 crore shares.
IREDA IPO will open from 21 November to 23 November, and share allotment will be finalised on 29 November 2023. Refunds will be initiated on 30 November 2023, and the shares will be credited to the demat account on 1 December 2023. The shares will be listed on NSE and BSE on 4 December 2023.
IREDA has set the price band for the IPO between Rs 30-32 per share. The face value for each share is Rs 10, and the lot size is 460 shares. The book-built issue is of Rs 2,150.21 crores. The issue is an offer for sale of 26.88 crore shares and a fresh issue of 40.32 crore shares.
Tata Technologies posted a revenue of Rs 2,587.42 and Profit After Tax (PAT) of Rs 351.90 crores for the period ending 30 September 2023. At the same period, the company had a net worth of Rs 2,853.13 crores, making it a financially stable and profitable company. The current P/E ratio of the company is 32.53, and EPS in Rs is 15.37.
IREDA IREDA posted a revenue of Rs 2,320.46 and Profit After Tax (PAT) of Rs 579.32 crores for the period ending 30 September 2023. In the same period, the company had a net worth of Rs 6,580.61 crores, which reflects that the company’s financial performance has been ideal. The current P/E ratio of the company is 8.47, and EPS in Rs is 3.78.
Objectives Of The Issue
Tata Technologies is a subsidiary of the Tata Group and is launching an IPO with the sole purpose of providing an exit to some current shareholders. As the book-built issue is entirely an offer for sale, Tata Technologies will not receive any proceeds from the IPO, and all the proceeds will go to the selling shareholders, especially Tata Motors.
IREDA is a mini ratna company administratively controlled by the Ministry of New and Renewable Energy (MNRE). The company will not receive any proceeds from the offer for sale as they will be received by the selling shareholders. The company will receive the proceeds from the fresh issue and intends to use them to meet future capital requirements and onward lending. It will also use the proceeds to create a brand image among existing and potential customers.
The minimum amount of investment required by retail investors in the Tata Technologies IPO is Rs 15,000 for one lot of 30 shares, and the maximum amount is Rs 1,95,000. The minimum lot size investment for sNII is 14 lots (420 shares), amounting to ₹210,000; for bNII, it is 67 lots (2,010 shares), amounting to ₹1,005,000.
The minimum amount of investment required by retail investors in IREDA IPO is Rs 14,720 for one lot of 460 shares, and the maximum amount is Rs 1,91,360. The minimum lot size investment for sNII is 14 lots (6,440 shares), amounting to ₹206,080; for bNII, it is 68 lots (31,280 shares), amounting to ₹1,000,960.
Investing in IPOs is one of the best ways to buy the shares of a company at the lowest possible price. As the IPO price is the lowest price offered by the company, it can substantially increase your profit margin in comparison to buying the shares after a specific time of listing.
Tata is a household name in India and comes with the highest possible goodwill for a brand. Tata Group is coming out with an IPO after 19 years for a company that is profitable and has immense growth potential. On the other hand, IREDA is a company that is administratively managed by the MNRE, making it a safe bet for IPO investing.
Now that you know everything about Tata Technologies VS IREDA IPO, you are better equipped to choose between the two based on your investment goals, risk appetite, and financial situation. You can even invest in both IPOs with multiple bids to increase your chances of allotment.