Tata Technology submits an IPO application; Tata Motors and other investors want to sell 23.6% By Tata Motors, Alpha TC Holdings, and Tata Capital
The Tata Technologies initial public offering will be a pure offer for sale.
For an initial offering to the general public in which parent company Tata Technologies Ltd. and others will sell as much as a 23.6% stake, the market regulator in India has requested approval. In the Tata Technologies initial public offering, Tata Motors (81,133,706), Alpha TC Holdings Pte (9,716,853), and Tata Capital Growth Fund I (4,858,425) would offer 95,708,984 shares, or 20%, 2.40%, and 1.
Currently, Alpha TC Holdings and Tata Capital Growth Fund I each hold 7.26% and 3.63% of the corporation, respectively, while Tata Motors has 74.69% of the total shares. The magnitude of the IPO, whose proceeds will go to the selling shareholders, wasn’t announced. In a recent repurchase, Tata Technology valued the business at Rs 16,080 crore. According to that estimate, the offer may be for at least Rs 3,800 crore.
Tata Technologies is a digital services company and global product engineering that aids its clients in driving, flying, building, and farming. It primarily serves Tata Motors, Jaguar Land Rover, and the larger Tata Group. Yet, the company has boosted the proportion of business coming from outside. Its non-captive account contribution increased from 46% in FY20 to 64% in the fiscal year that concluded on March 31, 2022.
In order to meet the product engineering and digital needs of the worldwide aerospace and defence sector, Tata Technologies, a critical supplier to the aircraft manufacturer Airbus SA, recently opened its innovation hub in Toulouse, France.
The company, which has 18 delivery centres worldwide and is led by Chief Executive Officer Warren Harris, employs more than 11,000 people worldwide. Tata Technologies reported sales of Rs 3,052.29 crore and a net profit of Rs 407.46 crore for the nine-month period that ended on Dec. 31, 2022. 88% of the total revenue was supplied by its service segment. Its authorized share capital is Rs. 811.83 crore, and its paid-up share capital is Rs.
