Tata Technologies IPO: All about the listing and the company

Tata Technologies, a subsidiary of Tata Motors slated for an IPO, has four core services that are Engineering, Research and Development (ER&D), digital enterprise services, education offerings, and product and value added reselling.

Tata Technologies' ER&D line of business provides engineering services to automakers, while its digital enterprise services segment works in services such as artificial intelligence, data analytics, machine learning and others. Tata Technologies’ education offerings provide manufacturing industry based knowledge to students.

Anchor clients for Tata Technologies are Tata Motors and Jaguar Land Rover. Tata Motors' product development and engineering expenses as a percentage of sales grew 150 basis points in FY23 with compared to FY20. For Jaguar Land Rover, however, research and development expenses fell 40 basis points in FY23 as compared with FY20. Future prospects look well for the company as “Tata Tech is a subsidiary of Tata Motors (promoter of Tata Tech), the company benefits from the long-term relationship with Tata Motors/JLR,” said Avendus Spark in a report.

Also read: Tata Technologies heads to IPO Street: All you need to know about the company