Mumbai :
Soon, the financial market will witness the launch of Tata Technologies initial public offering (IPO) as the Tata Group has filed papers with market regulator Sebi to launch the IPO.
Tata Technologies Initial Public Offering (IPO) Launch
The IPO is purely an offer for sale by the promoter Tata Motors and two other existing shareholders and doesn’t involve any fresh issue of shares.
Pouring more light on the subject, Tata Motors said,
“We wish to inform you that Tata Technologies, a subsidiary of Tata Motors Limited, has informed the company that it has today filed a draft red herring prospectus dated March 9, 2023 with the Securities and Exchange Board of India for an initial public offering.”
Tata IPO Offerings
This IPO is having an offer for sale (OFS) of up to 95,708,984 equity shares, representing approximately 23.60% of its paid-up share capital.
Coming to stakes, Tata Motors holds 74.42% in Tata Technologies, Alpha TC Holdings Pte Ltd,
a Singapore-based investment firm managed by Tata Capital Advisors, owns 8.96%, while Tata Capital Growth Fund owns another 4.48%.
This latest IPO from Tata Technologies comprises OFS of up to 81,133,706 equity shares by Tata Motors, 9,716,853 equity shares by Alpha TC Holdings
and up to 4,858,425 shares by Tata Capital Growth Fund I.
Each representing up to 20%, 2.40% and 1.20%, respectively of Tata Technologies paid-up share capital.
As part of this offer, 35% of the IPO size would be reserved for retail investors.
Reportedly, this offer is being made through the book building process. The technology company said that it is not contemplating a pre-IPO placement of its shares.
Earlier, the Tata Motors board had approved a partial divestment of its stake in Tata Tech through a public float in December.
Presently, the engineering unit of Tata Motors caters to the automotive, aerospace, industrial heavy machinery and others.
It helps companies in convergence of digital technology and traditional engineering to develop better products being a global product engineering and digital services company.
The company had reported a revenue of Rs 3,011.8 crore, recording a growth of 15.5% on a year-on-year basis during the nine-month period ending December 2022.
For this period, the company’s profit stood at Rs 407.5 crore.
This seems to be the second IPO filed by the diversified conglomerate since the listing of TCS in 2004.
Prior to this, the satellite TV operator Tata Play had filed a ‘pre-filed’ DRHP or confidential IPO papers with Sebi in december.
It was also the first company to do so under the new regulations.