Tata Tech IPO: Tata Motors shareholders to get 10% reservation; co filed addendum to DRHP

Tata Technologies, the IPO-bound Tata Group entity, filed an addendum with SEBI to its draft red herring prospectus (DRHP) on Tuesday. In its changes communicated to the market watchdog, Tata Technologies has announced the reservation for the shareholders of Tata Motors, its parent company and eligible employees of the company.

The offer now includes a reservation of up to 10 per cent of the post-offer paid-up equity share capital of the company for the eligible shareholders of the Tata Motors. Similarly, eligible employees of the company will have a reservation of up to 0.50 per cent of the post-offer paid-up equity share capital, it said in the addendum.

However, the company did not disclose or confirm if there will be any discount for shareholders of Tata Motors and/or eligible employees of the company. Tata Technologies has received the nod to launch its initial stake sale from the capital market's regulator Sebi and the company is likely to list in the ongoing quarter.

Tata Technologies is a global engineering services company offering product development and digital solutions to global original equipment manufacturers. It is one of the most awaited IPOs of primary market and offering by the Tata Group after about 17 years, following Tata Consultancy Services.

The initial public offering of Tata Technologies comprises an offer for sale of up to 95,708,984 equity shares, in which Tata Motors will offload up 81,133,706 equity shares, Alpha TC Holdings will sell up to 9,716,853 equity shares and Tata Capital Growth Fund I will release up to 4,858,425 equity shares of the company.

Half of the net offer or 50 per cent shares of Tata Technologies IPO will be reserved for qualified institutional bidders, while non-institutional investors (NIIs) will get not more than 15 per cent of shares. Retail investors will get a chunk of around 35 per cent in this IPO.

JM Financial, Citigroup Global Markets India and BofA Securities India are the book running lead managers for this issue, while Link Intime India has been appointed as the registrar for the same. Shares of Tata Technologies will be listed on both BSE and NSE.

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