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Tata Technologies, the engineering and digital services arm of the Tata Group, is preparing for its highly anticipated Initial Public Offering (IPO), with plans to offer a total of 9.57 crore shares, according to the company’s addendum filed with the Securities and Exchange Board of India (SEBI) on Tuesday. Each share in the IPO will have a face value of Rs 2, making it an accessible investment opportunity for a broad spectrum of investors.
The IPO will include 8.11 crore shares offered by promoter Tata Motors (NYSE:), while Alpha TC Holdings and Tata Capital Growth Fund will contribute 97 lakh and 48.6 lakh shares respectively. The company has enlisted JM Financial, Citi, and BofA Securities as book runners to facilitate the IPO process.
As per the company’s Draft Red Herring Prospectus (DRHP), Tata Technologies aims to carry out an Offer for Sale (OFS) of up to 95,708,984 equity shares by selling shareholders and intends to list its equity shares on public exchanges such as BSE and NSE. The company stated in its DRHP that it believes the proposed listing will enhance visibility, boost its brand image, and provide a public market for its Equity Shares in India.
The price band and offer price for the IPO will be determined by Tata Tech in consultation with BRLM based on the market demand assessment for the equity shares offered through the Book Building Process and considering quantitative and qualitative factors.
Notably, Tata Tech IPO has reserved no more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Investors (NII), and at least 35% of the offer is reserved for Retail Investors.
Established in 1989 as the automotive design division of Tata Motors, Tata Technologies embarked on its independent journey in 1994. The upcoming Tata Technologies IPO marks a significant stride for the Tata conglomerate, marking its return to the IPO arena after a prolonged absence, aligning with shifting market dynamics and investor sentiment.
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