Tata Technologies IPO: Things to Know Before Investing

The upcoming IPO of Tata Technologies, a subsidiary of Tata Motors, marks the first IPO from a Tata group company in 19 years, with the last one being the TCS IPO in June 2004. As per the latest news, Tata Motors plans to sell 8,11,33,706 Tata Technologies shares through an IPO route. The pricing of the IPO is yet to be determined by Tata Technologies.

Tata Technologies is an IT company that primarily provides outsourced engineering services and global digital transformation solutions to clients. They aim to assist companies in conceiving, designing, developing, and delivering better products. They have vast knowledge and expertise in the automotive industry and cater to adjacent sectors such as aerospace, transportation, and construction of heavy machinery (TCHM). Tata Technologies is a global organisation committed to delivering exceptional solutions to its clients.

Tata Technologies Product Portfolio

Tata Technologies, a subsidiary of Tata Motors Ltd, is a renowned global company that offers digital solutions and product engineering services to global Original Equipment Manufacturers (OEMs). They provide turnkey solutions and operate in automobile, heavy industrial machinery, and aerospace. They have a vast workforce of over 11,081 employees, including 920 contractors, across 18 global delivery centres. Tata Motors holds a major stake of 74.69% in Tata Technologies, while Tata Capital Growth Fund I and Alpha TC Holdings Pte hold 3.63% and 7.26%, respectively.

Tata Technologies is primarily categorized into two segments – Services and Technology Solutions. Services account for 75.12% of the company’s total revenue and include outsourced engineering services and digital transformation services that help their global manufacturing clients conceive, design, develop, and deliver better products. The Technology Solutions segment complements its service offerings with Products and Education businesses. Through the Products business, they sell third-party software applications, primarily product lifecycle management (PLM) software and solutions, and offer consulting, implementation, systems integration, and support as value-added services.

About the IPO

Tata Technologies’ IPO will comprise a pure offer for sale (OFS) of up to 95.71 million shares. Tata Motors, which plans to sell nearly 81.13 million shares (20%), Alpha TC Holdings Pte, planning to sell up to 9.72 million shares (2.40%); and Tata Capital Growth Fund I, selling up to 4.86 million shares (1.20%), are the selling shareholders.

As per the DRHP, the selling shareholders, including the promoter selling shareholder, have an average cost of acquisition per equity share as follows: Tata Motors Limited holds 303,006,000 equity shares at an average cost of Rs 7.40 per share; Alpha TC Holdings Pte. Ltd. holds 29,445,010 equity shares at an average cost of Rs 25.10 per share; and Tata Capital Growth Fund I holds 14,722,500 equity shares at an average price of Rs 25.10.

The Objectives of Tata Technologies IPO

The upcoming IPO is a 100% offer for sale (OFS) issue, meaning that the company will not receive any proceeds from the IPO. The funds raised from the sale of shares will go entirely to the selling shareholders. The utilization of the offer proceeds will be at the discretion of the selling shareholders, and the company will not have any control over it.

Additionally, the selling shareholders will bear the expenses incurred for the IPO, including underwriting fees, legal expenses, and other fees. These expenses will be deducted from the proceeds of the offer before the selling shareholders receive their share of the proceeds. Notably, the company will not incur any expenses related to the IPO as it is a 100% OFS issue.

Financial Performance (In Crore)

Important Dates for Tata Technolgies IPO

Promoters of the Company

The promoter of the company is Tata Motors Limited.

How to Apply

Wait for the public issue to open for subscription, then click on this link to apply for the Tata Technologies IPO with Bigul https://ipo.bonanzaonline.com/.

How to Check Allotment Status

The registrar for Tata Technologies IPO is Link Intime India Private Limited To check your allotment status, please click on this link https://www.linkintime.co.in/IPO/public-issues.html

FAQs

1. When is the Tata Technologies IPO coming?

The Tata Technologies IPO is yet to be announced.

2. What is the pricing of the Tata Technologies IPO?

The pricing of the Tata Technologies IPO has not yet been determined.

3. What is the size of the Tata Technologies IPO?

The Tata Technologies IPO will comprise a pure offer for sale (OFS) of up to 95.71 million shares.

4. What is the objective of the Tata Technologies IPO?

The Tata Technologies IPO is a 100% OFS issue, which means that the company will not receive any proceeds from the IPO. The funds raised from the sale of shares will go entirely to the selling shareholders.

5. What is the financial performance of Tata Technologies?

As per the available information, Tata Technologies’ revenue was Rs 2,852.06 crores in FY20, Rs 2,380.91 crores in FY21, Rs 3,529.58 crores in FY22, and Rs 3,011.79 crores in 9MFY23. The net income for FY20, FY21, FY22, and 9MFY23 was Rs 251.57 crore, Rs 239.17 crore, Rs 436.99 crore, and Rs 407.47 crore, respectively.

6. Who are the selling shareholders of the Tata Technologies IPO?

The selling shareholders of the Tata Technologies IPO are Tata Motors, Alpha TC Holdings Pte, and Tata Capital Growth Fund I.

7. How can I apply for the Tata Technologies IPO?

You can apply for the Tata Technologies IPO when it opens for subscription through an online platform Bigul.

8. What is the allotment status of the Tata Technologies IPO?

The allotment status of the Tata Technologies IPO can be checked through the registrar, Link Intime India Private Limited.