Tata Technologies Ltd has filed a draft red herring prospectus with Securities and Exchange Board of India to raise funds via initial public offering (IPO).
The issue comprises a pure offer for sale of up to 95.71 million shares by its existing promoters and shareholders. The OFS consists of up to 81.13 million shares by Tata Motors, up to 9.72 million shares by Alpha TC Holdings Pte and up to 4.86 million shares by Tata Capital Growth Fund I.
Currently, Tata Motors holds 74.69 percent stake in the firm while Alpha TC Holdings Pte has 7.26 percent stake. Tata Capital Growth Fund I has 3.63 percent stake in the company.
Also Read: Tata Motors arm Tata Technologies eyes IPO; will it be the first from Tata Group since TCS in 2004?
JM Financial Ltd, BofA Securities and Citigroup Global Markets India Pvt Ltd are the lead managers to the issue.
Tata Technologies is a company that specializes in product engineering and digital services, catering to industries including automotive, industrial heavy machinery, and aerospace. Having been established 33 years ago, the company has a considerable amount of experience in the field.
It offers various products and services, including engineering, research and development, digital enterprise solutions, education programs, value-added reselling, and IT product lifecycle management services for connected businesses.
If Tata Technologies' public offer outperforms the proposed IPO of Tata Play, it could mark the first time in over 18 years that the Tata group has gone public.
Led by company veteran Warren Harris, the Pune-based firm boasts a workforce of over 11,081 employees spread across 18 delivery centers in the US, Europe, India, China, Japan, and Singapore. Its competitors in the market include Cyient, Johnson Controls, Infosys, KPIT Technologies, and Persistent.
The company depends mostly on the Tata Group for business, especially Tata Motors and Jaguar Land Rover. However, Tata Tech has increased the share of business generated outside. Its non-captive account contribution increased to 64 percent in FY22 from 46 percent in FY20.
For the nine month ended December 2022, the firm reported a revenue of Rs 3011.79 crore against Rs 2607.30 crore a year ago. Net profit for the period stood at Rs 407.47 crore versus Rs 331.36 crore last year. Its service segment revenue contributed 88.43 percent for the nine month period while 85.88 percent for FY22 of the total revenue.
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