Tata Technologies, Anand Rathi said, may see an improvement in Ebitda margins from the prevailing 18-19 per cent level and see offshoring and utilisation. 
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Tata Technologies, Anand Rathi said, may see an improvement in Ebitda margins from the prevailing 18-19 per cent level and see offshoring and utilisation. Tata Investment Corporation Ltd, an investment company of Tata group, saw its shares climbing over 19 per cent in Friday's trade, thanks to unlocking opportunity on account of Tata Technologies Ltd initial public offer (IPO). Tata Technologies, whose issue would kick off on Wednesday, November 22, is a subsidiary of Tata Motors. Tata Investment Corporation is a promoter group entity in Tata Motors, owning 0.33 per cent stake as on September 30. This would be the first IPO by the Tata group after Tata Consultancy Services (TCS) in 2004.
Other than Tata Motors, Tata Investment Corporation owned stakes in at least six other listed Tata group firms including as Tata Chemicals, Tata Consumer Products Ltd, Trent, Tata Elxsi, Tata Steel, Tata Consultancy Services.
The stock rose 19.40 per cent to hit a high of Rs 3,885.65 on BSE. The price band for Tata Technologies IPO has been fixed in Rs 475-Rs 500 per shares. Investors willing to apply for the issue could bid for a minimum of 30 shares and multiples of 30 shares thereafter.
The Tata Technologies IPO would comprise of an offer for sale (OFS) of up to 60,850,278 shares including sale of up to 46,275,000 shares by Tata Motors Ltd, up to 9,716,853 shares by Alpha TC Holdings and up to 4,858,425 Equity Shares by Tata Capital Growth Fund I.
"Focusing on verticals like auto (75 per cent of overall revenue) and aero (part of others, 10 per cent of revenue), Tata Tech is a mid-size ER&D services company with ~$547 million revenue. It has long-term collaborations with anchor clients (Tata Motors and JLR, 40 per cent of auto revenue) and offers turnkey vehicle-development solutions for combustion & electric powertrains. Besides, it offers manufacturing cost reduction and after-sales solutions," said Anand Rathi in a note.
The brokerage expects Tata Technologies to see an improvement in Ebitda margins from the prevailing 18-19 per cent level and see offshoring and utilisation.
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