By Tata Motors, Alpha TC Holdings, and Tata Capital, the Tata Technologies initial public offering will be a pure offer for sale.
For an initial public offering, Tata Technologies Ltd. has applied for permission from India’s market regulator, which will see parent company Tata Motors Ltd. and others sell as much as a 23.6% share.
According to the draught red-herring prospectus posted on the website of the Securities and Exchange Board of India, the Tata Technologies IPO will be a pure offer for sale of 95,708,984 shares by Tata Motors (81,133,706), Alpha TC Holdings Pte (9,716,853), and Tata Capital Growth Fund I (4,858,425), equivalent to 20%, 2.40%, and 1.20% stake, respectively.
Currently, Alpha TC Holdings and Tata Capital Growth Fund I each hold 7.26% and 3.63% of the corporation, respectively, while Tata Motors has 74.69% of the total shares.
The selling shareholders will receive the revenues of the IPO, although its size wasn’t made public. In a recent repurchase, Tata Technology valued the business at Rs 16,080 crore. According to that estimate, the offer may be for at least Rs 3,800 crore.
The issue’s book-running lead managers are JM Financial Ltd., BofA Securities, and Citigroup Global Markets India Pvt. Ltd.
Tata Technologies is a global product engineering and digital services company that aids its clients in driving, flying, building, and farming. It primarily serves Tata Motors, Jaguar Land Rover, and the larger Tata Group. Yet, the company has boosted the proportion of business coming from outside. Its non-captive account contribution increased from 46% in FY20 to 64% in the fiscal year that concluded on March 31, 2022.
In order to meet the product engineering and digital needs of the worldwide aerospace and defence sector, Tata Technologies, a critical supplier to the aircraft manufacturer Airbus SA, recently opened its innovation centre in Toulouse, France.
The company, which has 18 delivery centres worldwide and is led by Chief Executive Officer Warren Harris, employs more than 11,000 people worldwide.
Tata Technologies reported sales of Rs 3,052.29 crore and a net profit of Rs 407.46 crore for the nine-month period that ended on Dec. 31, 2022. 88% of the total revenue was supplied by its service segment. Its authorised share capital is Rs 350 crore, while its paid-up share capital is Rs 811.83 crore.
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