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Business News/ Companies / News/  Tata Tech IPO: Morgan Stanley, Blackrock, US funds likely to invest in the public issue, says report
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Tata Tech IPO: Morgan Stanley, Blackrock, US funds likely to invest in the public issue, says report

Tata Technologies is in talks with Morgan Stanley Investment Management, Blackrock, and U.S hedge funds to invest in its IPO at a valuation of $2.5 billion.

Tata Technology is in talks with Morgan Stanley Investment Management to invest in its IPO at a valuation of $2.5 billionPremium
Tata Technology is in talks with Morgan Stanley Investment Management to invest in its IPO at a valuation of $2.5 billion

Tata Technologies is negotiating with Morgan Stanley Investment Management, Blackrock, and some US hedge funds to invest in its initial public offering at a valuation of $2.5 billion, reported Reuters citing sources with direct knowledge.  

Tata Tech IPO will be the first in two decades for a Tata Group company. Tata Technology provides engineering services for companies in the auto and aerospace sectors among others. 

Also Read: Tata Technologies IPO: Latest GMP, expected price, date, other details you may like to know

Ahead of its planned $350-375 million IPO, Tata Tech is in contact with US asset managers Ghisallo Capital, Oaktree Capital, and Key Square Capital, as well as Blackrock and Morgan Stanley for possible participation in the deal, reported the news agency. 

Also Read: Kalyani Cast Tech IPO Day 2: Issue subscribed over 13 times so far; check latest GMP, other key things to know

There has been no official confirmation from the prospective investors of the issue. Oaktree declined to comment while Tata and the other investors did not respond to queries seeking comment.

Morgan Stanley, and Blackrock interested in Tata's anchor book investment

These US hedge funds, along with Blackrock and Morgan Stanley are interested in Tata's anchor book investment. Under this, high-profile institutional investors are allotted shares before the subscription opens for retail and other investors. 

Also REad: Protean eGov Technologies Limited IPO: GMP, how to check allotment status online

"Big investors are quite excited by the Tata brand, and a profitable company with scale, that's driving demand," the first source told Reuters' M. Sriram.

The deal negotiations are assessing Tata Technologies' valuation to be at $2.5 billion now. The present valuation is around 25% higher than last month when TPG picked up a 9.9% stake in pre-IPO fundraising.

Tata Tech IPO's expected subscription date

Tata Technologies IPO will open for subscriptions around November 21, sources told Reuters. Investors and market experts are looking with huge optimism at the IPO as it can be one of India's biggest IPOs this year after Mankind and Blackstone-owned Nexus Malls. The company is planning to make its trading debut by late November.

For nine months of duration till December 31, 2022, Tata Technologies profit increased by 23% to 4,074 million rupees. Its total income increased by 15% to 30.5 billion rupees, according to its draft paper submitted in March.

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Published: 09 Nov 2023, 03:56 PM IST
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