Tata Technologies plans to float IPO: Key things you should know about the company

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Tata Technologies plans to float an initial public offering on the back of a spate in demand in the electric vehicles segment and a rebound in the aerospace industry.

The Tata Motors subsidiary, a global product engineering and digital services company from the Tata group stable, has initiated the IPO process by getting onboard an investment bank to evaluate the float, Moneycontrol reported on July 8 in an exclusive report (read here).

If Tata Group's plan goes through, then this will be the first public float by a Tata group company after the TCS went listed in 2004.

Tata Motors holds little more than 74 percent stake in Tata Technologies, according to the automaker's 2022 annual report.

Tata Tech focuses on four key verticals - automotive, aerospace, industrial machinery and industrials. It has been growing rapidly on the back of the move to autonomous, connected, electrification and shared (ACES) mobility and accelerated investment in digital as manufacturing companies adapt to meet new and evolving customer needs.

For the year ended March 31, 2022, Tata Tech has delivered a revenue of Rs 3529.6 crore, together with an underlying operating profit of Rs 645.6 crore and a profit after tax of Rs 437.0 crore.

"These best ever results equate to a year-on-year revenue growth of 47 percent, operating profit growth of 65 percent, and profit after-tax growth of 74 percent,” said S Ramadorai, the chairman of the board of directors, in the firm’s latest annual report.

Headquartered in Pune, Tata Technologies has 18 global delivery centres across the globe. It has a 9,300-strong workforce, serving clients from facilities in North America, Europe and the Asia-Pacific region. The company plans to hire at least 1,000 more people in FY2023 than its planned recruitment of over 3,000 innovators over a 12-month period.

"That speaks to the fact that increasingly, we are not opportunities constrained. We are very much supply-side constrained and so the investments that we are making are biased towards building the type of capacity and capability that will enable us to fulfil the requirements of our customers," Tata Technologies Managing Director and CEO Warren Harris told PTI in February.

The company is empanelled by Airbus in its engineering, manufacturing engineering and services strategic supplier programme.

Tata Technologies has recently announced that it has joined the Foxconn-initiated MIH Consortium to promote development of sustainable mobility solutions and encourage collaboration within the industry.

The MIH (Mobility In Harmony Consortium) comprises more than 2,300 members in the field of software, hardware and services. The goal of this open electric vehicle alliance is to bring the strategic partners together to build the next generation of EV, autonomous driving and mobility service applications.