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Tata Motors on Monday said that company board has given in-principal approval for partial disinvestment in its subsidiary Tata Technologies via IPO route.

In a meeting held on Monday, the company board decided to explore partial disinvestment of its investment in Tata Technologies, a global product engineering and digital services company.

"Tata Motors Limited (the “Company")], at its meeting held today, i.e., on December 12, 2022 has accorded its in-principle approval to explore the possibility of partial divestment of the Company’s investment in Tata Technologies Limited [“TTL"], a subsidiary of the Company, through an IPO route at an opportune time, subject to market conditions, applicable approvals, regulatory clearances (including observations from the Securities and Exchange Board of India) and certain other considerations," the compnay said in its regulatory filing

"The Company will make further announcements of all material developments relating to IPO, as and when required, as per SEBI LODR Regulations and other applicable laws," the filing added.

Warren Harris is the Chief Executive Officer (CEO) and Managing Director (MD) of Tata Technologies. He became the CEO of the company in 2014.

“In addition to our automotive operations, we are also involved in other business activities, mainly Information Technology services. The Company’s revenue from other operations before inter-segment eliminations was 3,809 crores in FY 2021-22, an increase of 45.8% from 2,612 crores in FY 2020-21," said Tata Motors in its annual report. 

"The increase in revenue of Tata Technologies is due to due to relaxation in regulatory and health guidelines that enabled improved business activities coupled with new business opportunities in South East Asia. Revenues from other operations represented 1.4% and 1.0% of our total revenues, before inter-segment eliminations, in FY 2021-22 and FY 2020-21, respectively," the annual report added.

Automobile major Tata Motors reported a consolidated net loss of 944.61 crore for the second quarter ending September (Q2FY23). The company had posted a net loss of 4,441.57 crore in the year-ago period (Q2FY22) and 5,006.60 crore in the previous June quarter (Q1FY23), respectively. The consolidated revenue jumped 29.7% to 79,611.37 crore as against 61,378.82 crore from the year-ago period.

 

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Updated: 13 Dec 2022, 06:37 AM IST
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