Tata AutoComp says IPO likely over next two weeks

The Tata group-promoted Tata AutoComp Systems (TACO) today said its Rs 750-crore initial public offering (IPO) is likely to hit the market over the next two weeks.

The automobile components manufacturer had filed its draft prospectus with the capital market regulator, Securities and Exchange Board of India (SEBI) in December last year to raise Rs 750-crore. "We have received SEBI permission for the IPO. If everything goes well, we will be able to hit the capital market over the next two-weeks," Tata AutoComp Systems' Managing Director and CEO R S Thakur told PTI here. The issue will include the sale of nearly 35.63 million shares by its shareholders that include Tata Motors, Tata Industries, Tata Sons, Tata Capital and Tata Investment Corporation. The face value of the equity shares is Rs 10 each. The company has roped in JM Financial Consultants, Tata Capital Markets and JP Morgan India as lead managers to its issue. "We plan to use the proceeds for repayment of loans, investment in TACOCL, one of our subsidiaries and general corporate purposes," Thakur said. Apart from Tata Motors, the company plans to increase its business from other automobile companies. Presently, Tata Motors holds a 26% stake in TACO. "Our 50% business comes from Tata Motors and the rest from other automobile companies. Going forward, we want to increase our business from other auto majors," he said. With more global auto majors entering India, the company is eyeing to double its revenue over the next four years. "We want to double our revenue by 2015," he said. The company posted revenue of Rs 2,900-crore in FY11.      On impact of hike in interest rates, Thakur said, "It (increasing interest rates) will not affect for a long-term. The industry will recover soon." Tata AutoComp provides products and services to the Indian and global automotive OEMs as well as Tier 1 suppliers. Its clients include Ashok Leyland, BMW, Fiat, Force Motors, Ford Motors India and General Motors India, among others.