Tata Technologies files for IPO, a leading player in the engineering and product development space, has filed for an initial public offering (IPO) with India’s market regulator.
The IPO will see its parent company, Tata Motors, and other shareholders offload up to 23.6% of their stake in the company, with Tata Motors currently holding a 74.69% stake.
The IPO will comprise a pure offer for sale of up to 95.71 million shares. OFS of up to 81,133,706 equity shares by Tata Motors, 9,716,853 equity shares by Alpha TC Holdings and up to 4,858,425 shares by Tata Capital Growth Fund I.
Size of the IPO
While the size of the IPO has not been disclosed, recent buybacks have valued the company at approximately ₹16,080 crore.
Indicating that the offered size could be at least ₹3,800 – ₹4,000 crore. The proceeds from the IPO will go to the selling shareholders.
Bankers for Book-Running
JM Financial Ltd., BofA Securities, and Citigroup Global Markets India Pvt. Ltd. have been appointed as the book-running lead managers for the issue.
About Tata Technologies
The global engineering, research, and development (ER&D) spend for 2021 was around $1.64 trillion, and this is expected to grow to approximately $2.28-2.33 trillion by 2025.
With the outsourced ER&D spend set to grow at a 10-12% CAGR between 2021 and 2025.
Tata Technologies is well positioned to benefit from this growth, with a revenue of Rs 3,052.29 crore and a net profit of Rs 407.46 crore for the nine-month period ending Dec. 31, 2022.
Its service segment contributed 88% of the total revenue. The company has a paid-up share capital of Rs 811.83 crore and an authorised share capital of Rs 350 crore.
The IPO will provide an opportunity for investors to participate in Tata Technologies’ growth story as the company leverages its expertise to capture a share of the growing ER&D market.
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