Barun Jha / PTI
London: Indian business house Tata Group’s engineering arm Tata Technologies plans to tap the capital market next year to raise funds in what could be the first initial public offer by a group company since IT firm TCS.
“We are looking to list Tata Technologies in Indian market through an IPO in 2008,” David Myers, chief financial officer of UK-based INCAT Ltd, a Tata Technologies company, told visiting Indian reporters here.
The funds would be used to repay some of the debt and for future expansion programmes, Myers said.
Asked how much it was looking to raise from the IPO, Myers said these details would be worked out in due course. “But our aim today is to list the company by the end of next year,” he said.
The public offer could be the first by a Tata Group firm since that of Tata Consultancy Services in 2004, India’s biggest software exporter and the most valued group firm on Indian stock exchanges. TCS had raised about Rs5,400 crore. The Tata group comprises close to 100 companies, of which about 30 are listed on the bourses.
Tata Technologies had acquired INCAT in October 2005. The INCAT brand was retained as it was already established in the UK and other European markets, Myers said, adding INCAT brand was launched in India last year.
“We have set a goal to increase our total revenue to $500 million by 2010, from $220 million currently,” he said.
He said this target would need a huge growth in headcount, which could be easily doubled by 2010, with the majority of new jobs in India. The company currently has 3,000 employees, including 2,300 at its main delivery centre in Pune and 210 in the UK.