Tata Technologies files IPO papers with Sebi

Tata Technologies IPO: Tata Technologies Ltd, a global product engineering and digital services company, is set to make its initial public offering (IPO) debut, after having filed a draft red herring prospectus with the Securities and Exchange Board of India. The company is a strategic supplier to plane maker Airbus SA and is largely associated with the Tata Group, Jaguar Land Rover, and Tata Motors.

We wish to inform you that Tata Technologies Limited (“Tata Technologies”), a subsidiary of Tata Motors Limited, has informed the Company that it has today filed a draft red herring prospectus dated March 9, 2023 with the Securities and Exchange Board of India for an initial public offering, Tata Motors informed via a exchange filing on 9 March.

The company plans on selling up to 9.5 crore shares, representing approximately 23.6 percent of its paid-up share capital through the IPO, according to the exchange filing.

Tata Technologies files DRHP with SEBI for IPO

The IPO comprises a pure offer for sale of up to 95.71 million shares by its existing promoters and shareholders, including Tata Motors, Alpha TC Holdings Pte, and Tata Capital Growth Fund I. Tata Motors currently holds a 74.69 per cent stake in the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund I have a 7.26 per cent and 3.63 per cent stake, respectively. JM Financial Ltd., BofA Securities, and Citigroup Global Markets India Pvt. Ltd. are the book-running lead managers to the issue.

Size of the IPO

The size of the IPO, whose proceeds will go to the selling shareholders, wasn’t disclosed. However, 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, said Krishna Raghavan, Founder, UnlistedKart, SEBI Registered Research Analyst Firm

With a successful IPO, the company will be able to generate more value for its shareholders and continue its growth trajectory, he added.

DRHP is a document that consists of the company's financial details, future prospects, and other key aspects regarding the business, and is being filed to the regulator to raise money essentially via public offerings of its shares.

Founded in 1989, Tata Technologies has been at the forefront of driving innovation and providing quality services to its clients, with a significant contribution from its service segment.