With Sebi nod, Tata Tech gears up to float first public issue from the group in 20 years

Tata Technologies

Market regulator the Securities and Exchange Board of India (SEBI) has approved Tata Technologies Ltd's initial public offering (IPO), the first public issue from the Tata group in nearly 20 years.

The capital markets regulator also approved SBFC Finance Ltd and Gandhar Oil Refinery Ltd's IPOs.

Tata Tech had filed draft papers with SEBI in March. The much-awaited issue is a complete offer for sale (OFS) of up to 95.71 million shares by existing promoters and shareholders— up to 81.13 million shares by Tata Motors, 9.72 million by Alpha TC Holdings Pte and up to 4.86 million by Tata Capital Growth Fund I.

At present, Tata Motors holds a 74.69 percent stake in the firm, while Alpha TC Holdings Pte has a 7.26 percent stake. Tata Capital Growth Fund I has a 3.63 percent stake in the company.

JM Financial Ltd, BofA Securities and Citigroup Global Markets India Pvt Ltd are the lead managers to the issue.

The other IPOs

SBFC Finance refiled draft documents with SEBI in March. The lender reduced its IPO size to Rs 1,200 crore from Rs 1,600 crore. The IPO comprises fresh issue of Rs 750 crore and an OFS of Rs 450 crore.

ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book-running lead managers to the issue.

Gandhar Oil Refinery Ltd IPO, for which papers were filed in December 2022, comprises a fresh issue of Rs 357 crore and OFS of up to 1.2 crore shares by promoters and shareholders.

The proceeds from the fresh issue will be used for paying debt and purchasing of equipment and civil work required for expansion in capacity of automotive oil at the Silvassa plant, the company has said.

Gandhar Oil Refinery is a leading manufacturer of white oils, with a growing focus on the consumer and healthcare end industries. Edelweiss Financial Services and ICICI Securities are the merchant bankers for the IPO.

White mineral oil is a highly refined colourless and odourless mineral oil that finds wide use in pharmaceuticals and cosmetics, among others