Tata Technologies Prepares for IPO with 9.57 Crore Shares Available

Tata Technologies, the engineering and digital services division of the Tata Group, is gearing up for its eagerly awaited Initial Public Offering (IPO). The company plans to issue a total of 9.57 crore shares, as indicated in its recent addendum submitted to the Securities and Exchange Board of India (SEBI). Each share will have a face value of Rs 2, making it an attractive investment option for a wide range of investors.

The offering will comprise 8.11 crore shares from promoter Tata Motors, with additional contributions of 97 lakh shares from Alpha TC Holdings and 48.6 lakh shares from Tata Capital Growth Fund. Tata Technologies has selected JM Financial, Citi, and BofA Securities as book runners to manage the IPO proceedings.

According to the Draft Red Herring Prospectus (DRHP), Tata Technologies plans to initiate an Offer for Sale (OFS) of up to 95,708,984 equity shares from selling shareholders and will aim to list its shares on public exchanges, including BSE and NSE. The company believes this listing will enhance its visibility, strengthen its brand image, and create a public market for its equity shares in India.

The final price band and offer price for the IPO will be established by Tata Technologies in consultation with the Book Running Lead Managers (BRLM), based on market demand assessments and considering both quantitative and qualitative factors.

Importantly, Tata Technologies’ IPO has set aside no more than 50% of the shares for Qualified Institutional Buyers (QIB), at least 15% for Non-Institutional Investors (NII), and a minimum of 35% for Retail Investors.

Founded in 1989 as the automotive design division of Tata Motors, Tata Technologies became an independent entity in 1994. This upcoming IPO represents a significant milestone for the Tata conglomerate, signifying its return to the IPO market after a long hiatus, while aligning with evolving market dynamics and investor interest.