Tata Technologies Ltd, a global product engineering and digital services firm, is preparing to go public after filing a draught red herring prospectus with the Securities and Exchange Board of India. The company is largely associated with the Tata Group, Jaguar Land Rover, and Tata Motors, and is a strategic supplier to plane maker Airbus SA.
Tata Technologies Limited (“Tata Technologies”), a subsidiary of Tata Motors Limited, has informed the Company that it has filed a draught red herring prospectus dated March 9, 2023 with the Securities and Exchange Board of India for an initial public offering, as announced by Tata Motors in an exchange filing on March 9.
Tata Technologies intends to sell up to 9.5 crore shares in the IPO, representing approximately 23.6 percent of its paid-up share capital.
The IPO is a pure offer to sell up to 95.71 million shares by the company’s existing promoters and shareholders, which include Tata Motors, Alpha TC Holdings Pte, and Tata Capital Growth Fund I. Tata Motors currently owns 74.69% of the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund I own 7.26 and 3.63 percent, respectively. The issue’s book-running lead managers are JM Financial Ltd., BofA Securities, and Citigroup Global Markets India Pvt. Ltd.
The size of the IPO, the proceeds of which will be distributed to the selling shareholders, was not disclosed. According to Krishna Raghavan, Founder, UnlistedKart, SEBI Registered Research Analyst Firm, Tata Technologies’ recent buyback valued the company at 16,080 crore, indicating that the offered size could be at least 3,800 – 4,000 crore. He added that with a successful IPO, the company will be able to generate more value for its shareholders while continuing its growth trajectory.
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