Tata Motors arm Tata Technologies files draft IPO papers with Sebi

Tata Technologies Limited, a subsidiary of Tata Motors Ltd, on Thursday filed its draft red herring prospectus (DRHP) with the capital markets regulator Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO).

Tata Motors is looking to offload up to 9,57,08,984 equity shares, via an offer for sale (OFS), amounting to 23.6 per cent paid-up capital of its technology arm.

The proposed offer includes a sale of up to 8.11,33,706 equity shares, or 20 per cent capital, by Tata Motors Limited. Among other selling shareholders, Alpha TC Holdings will offer up to 97,16,853 equity shares, Tata Capital Growth Fund-I will offer up to 48,58,425 equity shares, amounting to 2.40 per cent and 1.20 per cent, respectively.

Pune based Tata Technologies is led by company veteran Warren Harris, which has a workforce of over 11,081 employees spread across 18 delivery centers in the US, Europe, India, China, Japan, and Singapore.

According to the annual report of the company for the year 2022, Tata Motors owns a 74.42 per cent stake in Tata Technologies Limited. Tata Motors' IPO committee had given its in-principle approval to launch the IPO of Tata Technologies on December 12, 2022.

Its in-principle approval aimed to explore the possibility of partial divestment of the company’s investment in Tata Technologies, a subsidiary of the company, through an IPO route at an opportune time, the company had said in its then filing.

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