Pune-based Tata Technologies, a subsidiary of Tata Motors, on March 10 filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO) and raise funds.
The IPO consists of a pure offer for sale (OFS) of up to 95.71 million shares, with Tata Motors offering up to 81.13 million shares, Alpha TC Holdings Pte offering up to 9.72 million shares, and Tata Capital Growth Fund I offering up to 4.86 million shares.
Currently, Tata Motors holds a 74.69 percent stake in the company, while Alpha TC Holdings Pte and Tata Capital Growth Fund I hold 7.26 percent and 3.63 percent stakes, respectively.
Tata Technologies IPO: Key things to know about the company
Tata Tech: Global engineering services company
Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers.
The company uses domain expertise in the automotive industry to serve clients in other industries like aerospace, transportation, and construction heavy machinery.
Tata Tech IPO: First IPO after TCS
Tata Motors Limited is the promoter of Tata Technologies.
This is the first Tata Group company to go public on the domestic bourses since Tata Consultancy Services in 2004, making it a significant event for the salt-to-software conglomerate.
As per the prospectus, the average cost of acquisition per equity share acquired by the selling shareholders, including the promoter selling shareholder, is as follows: Tata Motors Limited: 303,006,000 equity shares held at an average cost of Rs 7.40 per share. Alpha TC Holdings Pte. Ltd.: 29,445,010 equity shares held at an average cost of Rs 25.10 per share. Tata Capital Growth Fund I: 14,722,500 equity shares held at an average cost of Rs 25.10 per share.
Tata Tech IPO: Financials
As per the DRHP, the company reported revenue from operations of Rs 3011.7 crore for the nine-month period ended December 31, 2022, and Rs 2607.3 crore for the same period in 2021. Additionally, the company reported a profit after tax of Rs 407.4 crore for the nine-month period ended December 31, 2022, compared to Rs 331.3 crore in the same period last fiscal year.
The company reported record numbers for the year ended 31st March 2022, with revenue of Rs 3529.6 crore, together with an underlying operating profit of Rs 645.6 crore and profit after tax of Rs 437.0 crore.
Tata Tech IPO: Employees and delivery centres
Warren Harris serves as the CEO of the company, which has a total of 11,081 employees (10,161 full-time and 920 contracted) catering to clients across North America, Europe, and the Asia-Pacific region from various facilities.
The company has 18 global delivery centers in North America, Europe, and the Asia-Pacific region, including Pune (headquarters), Gurgaon, Bengaluru, Thane, and Chennai in India; SEA – Shanghai in China; Bangkok in Thailand; Singapore; Tokyo in Japan; and Hanoi in Vietnam. In Europe, the centers are located in Brasov, Craiova, and Iasi in Romania, Gothenburg in Sweden, Gaimersheim in Germany, and Warwick in the UK. In North America, the center is located in Detroit, USA.