What is Core & Satellite strategy?

If you had held shares of Tata Motors or Tata Motors DVR on November 13, 2023, then, you would be eligible for applying in the upcoming Tata Technologies Rs 3,042-crore IPO under the shareholder category as well apart from the retail category. Retail investors who are shareholders of  the Tata Group company can apply for Tata Technologies IPO both under retail and shareholders categories. Such retail investors can apply twice in the IPO each under two different categories. This would increase their chances of getting allotment in the public issue. Such retail investors will get to bid for a maximum of 13 lots under each of the two different categories. So, they can actually bid for a maximum of 26 lots in this IPO if they apply under both these categories.

Your eligibility depends on the fact that you held Tata Motors or Tata Motors DVR shares on November 13, 2023.

Now, coming back to how much you can invest in Tata Technologies IPO. One lot contains 30 shares. While, the minimum price band is Rs 475. So, under the retail category, the small investor can invest  Rs 14,250 (475×30) for one lot. Maximum number of lots one can apply for, under each of retail and shareholder categories is 13. If the investor applies for all the lots available for him under one category, then, he can invest Rs 1.85 lakh. Similarly, if the investor wants to increase his chances and bid at higher end of the price band, then, he can invest Rs 1.95 lakh under one category.

The application process of the IPO under both the retail and shareholder categories is the same. Plus, criteria like the lot size, minimum investment limit, maximum investment limit, etc are all same to both these retail and shareholder category.

So, if the investor applies under both categories, then, he will be allowed to invest for maximum of Rs (1.95 lakh*2) = Rs 3.9 lakh. While, at the lower end of the price band, one can invest Rs (1.85 lakh *2) = Rs 3.70 lakh.

Tata Tech IPO goes on the floor on November 22, 2023. The offer is 100 per cent offer for sale (OFS).

Tata Group has kept 10 per cent quota of the IPO size for shareholders of Tata Motors. Total IPO size is Rs 3,042 crore.