Tata Technologies Limited, a subsidiary of Tata Motors, has announced its plan to go public through an initial public offering (IPO). The news comes after months of speculation about the possibility of an IPO for the engineering and R&D solutions provider.
Details of the IPO and its Shareholding Pattern
The IPO will consist of 95,708,984 equity shares for cash, representing approximately 23.60% of the company’s paid-up share capital. The company has filed a draft red herring prospectus (DRHP) dated March 9, 2023, with the Securities and Exchange Board of India (SEBI).
According to the 2022 annual report of Tata Technologies, Tata Motors currently holds 72.48% or 30,300,600 shares in the company, while Alpha TC Holdings, Tata Capital Growth Fund I, Tata Enterprises Overseas Limited, Subramanian Ramadorai, and Ratan Tata, among others, hold the remaining shares.
Offer for Sale
The Initial Public Offer will include an offer for sale of up to 81,133,706 Equity Shares by Tata Motors Limited, up to 9,716,853 Equity Shares by Alpha TC Holdings Pvt Ltd, and up to 4,858,425 Equity Shares by Tata Capital Growth Fund I, representing up to 20%, 2.40%, and 1.20% of Tata Technologies’ paid-up share capital, respectively.
Expansion Plans of Tata Technologies and the Importance of the IPO
Tata Technologies has been a supplier to Airbus for several years and has signed an agreement to scale up its presence in France’s Toulouse, Hamburg (Germany), and Seville (Spain). With the IPO, the company aims to further strengthen its presence in these markets and expand its customer base.
The price of the Tata Tech IPO and the date of the IPO are yet unknown, but the announcement has generated significant interest in the market. Industry experts believe that the IPO could be one of the biggest in recent years and could be a game-changer for the engineering and R&D solutions industry.
Expected Impact of IPO
The move to go public is expected to raise capital for Tata Technologies to expand its offerings in the areas of engineering, digital solutions, software product development, and other services. Additionally, the IPO is seen as a way to diversify the company’s shareholder base and increase its visibility in the global marketplace.
In summary, Tata Technologies’ decision to go public through an IPO is a significant development for the company and the industry together. With the infusion of capital, the company is expected to expand its offerings and increase its presence in the global marketplace. It remains to be seen how the IPO will be received by the market, but it is clear that Tata Technologies is poised for significant growth and success in the years ahead.
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