Tata Group company Tata Technologies has filed a draft prospectus with markets regulator Sebi to raise funds through IPO. The IPO is completely an offer for sale by promoters and selling shareholders.
Tata Technologies is a global product engineering and digital services company and a unit of Tata Motors Ltd.
Tata Technologies is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers.
Tata Technologies has a workforce of over 11,000 employees spread across 18 global delivery centres.
Tata Technologies has a paid-up share capital of Rs 811.83 crore and an authorised share capital of Rs 350 crore.
Tata Technologies’ issue will be completely an OFS, under which shareholders will offload up to 9.57 crore equity shares, which is around 23.60% of its paid-up share capital.
Tata Motors currently holds a 74.69% stake in Tata Technologies, while Alpha TC Holdings Pte and Tata Capital Growth Fund I have a 7.26% and 3.63% stake, respectively.
Tata Motors will offload 8.11 crore shares, or a 20% stake, in the company. Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.4%) and Tata Capital Growth Fund I would offload up to 48.58 lakh shares (1.2%).
Tata Technologies' recent buyback valued it at Rs 16,080 crore. Experts feel the offered size could be at least Rs 3,800 crore–Rs 4,000 crore.
Tata Technologies’s net profit from April 2022-December 2022 was Rs 407 crore, reported a revenue of Rs 3,011.8 crore, recording a growth of 15.5% on an annual basis. The services segment revenue of Tata Technologies contributed 88% of the total revenue.
As per market experts, the company may list itself at a market cap of around Rs 18,000 crore. It could roughly add Rs 35 to Rs 40 per share in Sum Of The Parts (SoTP) valuation of Tata Motors.
JM Financial Ltd, Citigroup Global Markets India and BofA Securities India are the book running lead managers to the issue.