Tata Technologies IPO: Here’s all to know about company, listing

Tata Technologies, a subsidiary of Tata Motors, is one of the most awaited ones on Dalal Street.

Tata Technologies filed its DRHP with the market regulator Securities and Exchange Board of India (Sebi) on 9 March.

Tata Technologies, a subsidiary of a Tata Motors, is an engineering services company that offer product development and turnkey solutions to global original equipment manufacturers (OEMs) and their tier-1 suppliers.

Tata Technologies IPO details

As per DRHP, Tata Technologies IPO will be a complete offer for sale (OFS) wherein its existing shareholders, including Tata Motors, Alpha TC Holdings Pte and Tata Capital Growth Fund-I, will offload their stake in the company. 

Auto major Tata Motors holds 74.69 per cent stake in the company. Under the OFS, Tata Technologies' parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company.

The selling shareholders will offload up to 9.57 crore units representing 23.60 per cent of its paid-up share capital.

Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40 per cent) and Tata Capital Growth Fund I would offload up to 48.58 lakh equity shares (1.20 per cent).

As per the DRHP, the weighted average cost of acquisition per equity share by Tata Motors is ₹7.40 per share, for Alpha TC Holdings Pte. Ltd is ₹25.10 per share and for Tata Capital Growth Fund I is ₹25.10.

The size of the IPO hasn’t been disclosed yet. The issue price has also not be disclosed.

Tata Technologies recognizes KPIT Technologies, L&T Technology Services, and Tata Elxsi as its listed competitors.

The book running lead managers to the Tata Technologies IPO are JM Financial, Citigroup Global Markets India and Bofa Securities India, while the IPO registrar is Link Intime India.

In FY22, Tata Technologies reported a net profit of ₹436.99 crore, while a total revenue of ₹3,578.38 .

Its net profit for the April-December period of FY23 was ₹407.47 crore and revenue during the period stood at ₹3,052.30 crore.