Tata Technologies submits IPO documents to Sebi for approval
- ByStartupStory | March 10, 2023
Tata Motors and two other current shareholders have filed IPO papers with Sebi to sell their stakes in Tata Technologies, with no plans for issuing new shares as part of the offering.
Tata Motors has announced that its subsidiary, “Tata Technologies, has filed a draft red herring prospectus with the Securities and Exchange Board of India for an IPO on March 9, 2023”.
The IPO of Tata Technologies will involve the sale of up to 95,708,984 equity shares through an offer for sale, which is equivalent to approximately 23.60% of the company’s paid-up share capital.
Currently, Tata Motors has a 74.42% stake in Tata Technologies, while Alpha TC Holdings Pte Ltd, an investment firm managed by Tata Capital Advisors, and Tata Capital Growth Fund hold stakes of 8.96% and 4.48%, respectively.
As part of the IPO, Tata Motors will offer for sale up to 81,133,706 equity shares, Alpha TC Holdings will offer up to 9,716,853 shares, and Tata Capital Growth Fund I will offer up to 4,858,425 shares. These amounts represent up to 20%, 2.40%, and 1.20%, respectively, of Tata Technologies’ paid-up share capital.
The IPO will be conducted through the book building process, and 35% of the total offering will be reserved for retail investors. Tata Technologies confirmed that there are no plans for a pre-IPO placement of its shares.
The board of Tata Motors had given the green light for a partial divestment of its ownership in Tata Technologies by means of a public offering back in December.
Tata Technologies, the engineering division of Tata Motors, provides services to a range of industries such as automotive, aerospace, and industrial heavy machinery. It is a global company that offers digital services and product engineering to help clients improve their products by combining digital technology with traditional engineering practices.
For the nine-month period ending in December 2022, Tata Technologies reported a revenue of Rs 3,011.8 crore, representing a YoY growth of 15.5%. The company’s profit for the same period was Rs 407.5 crore.
Tata Technologies IPO is the second public offering initiated by the diversified conglomerate since TCS was listed in 2004. In December, Tata Play, a satellite TV operator, became the first company to file confidential IPO papers with Sebi under new regulations.
Follow Startup Story
Related Posts
