All You Need To Know About Tata Group Company's Upcoming IPO

On March 10, 2023, Tata Motors subsidiary firm, Tata Technologies filed preliminary papers through initial public offering (IPO) with the securities and exchange board of India (SEBI). The company wants to raise capital via offer for sale (OFS) route. The details are given below.

Offer For Sale Details

Tata Technologies Limited will offload upto 95,708,984 equity shares, It comprises of Tata Motors 81,133,706 share contribution as the main promoter and two investors Alpha TC Holdings Pte. Ltd portion of 9,716,853 equity and Tata Capital Growth Fund I portion of 4,858,425 equity. Together combined its weighted proportion for OFS is 23.6%.

The date of issue is not mentioned yet in the draft red herring prospectus but it was given that the stock would get listed on NSE and BSE. The face value of equity share is Rs 2 per share. 50% of the offer will be for qualified institutional buyers, 15% is for non-institutional and 25% be for retail portion.

The offer price, price band and the minimum bid lot will be decided by the company in consultation with the Book Running Lead Managers and advertised in newspapers. JM Financial Limited, Citigroup Global Markets India Private Limited and BofA Securities India Limited will be the Book running lead managers.

About the company

Tata Technologies Limited is a subsidiary arm of Tata Motors Limited, a large cap auto company part of Tata Group conglomerate founded in 1989 with headquarters in Pune.

The company offers services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to automotive and aerospace original equipment manufacturers and their suppliers. The company is active in North America, Europe, the Middle East and the Asia Pacific region. It has 18 global centers across 27 countries

For the nine months ended December 2022, the firm reported revenue from operations of Rs 3,011.79 crore against Rs 2,607.30 crore for the nine months ended December 2021. The profit after tax was reported at Rs 407.47 crore for December 2022, higher than the previous year profit of Rs 331.36 crore.

As per the red herring prospectus, the weighted average cost of acquisition for Tata Motors is Rs 7.40 per share and Alpha TC Holdings Pte. Ltd and Tata Capital Growth Fund I is Rs 25.10 each

How to apply?

One can apply for Tata Technologies IPO via ASBA available through bank accounts. Login to online bank an apply by selecting the IPO in invest section. Or download forms available on NSE and BSE to fill apply for the IPO.