Tata Technologies Initiates IPO After Nearly Two Decades, IPO open on Nov-22

The Tata Group is set to re-enter the initial public offering (IPO) arena on November 22, marking its return after almost two decades. Tata Technologies Limited, a subsidiary of Tata Motors Limited, plans to launch its IPO as an offer for sale (OFS). This event signifies the Tata Group’s first IPO since the successful launch of Tata Consultancy Services (TCS) in 2004.

The company officially announced its IPO plans through an exchange filing on November 13. The IPO will consist of up to 60,850,278 shares in cash, comprising (a) up to 46,275,000 shares of the Company, (b) up to 9,716,853 shares by Alpha TC Holdings Pte. Limited, and (c) up to 4,858,425 shares by Tata Capital Growth Fund I. These shares represent 11.41%, 2.40%, and 1.20% of the paid-up capital shares of Tata Technologies Limited, respectively.

Tata Technologies Limited, having filed a draft red herring prospectus (DRHP) dated March 9, 2023, with the Securities and Exchange Commission of India, aims to offer up to 6,085,027 equity shares, equivalent to 10% of the total offer, for subscription by eligible shareholders of Tata Motors Limited.

The IPO subscription will be open to the public from November 22, 2023, to November 24, 2023.

Tata Motors recently reported a consolidated net profit of ₹3,783 crore for the September quarter, driven by the robust performance of its British arm, Jaguar Land Rover. This positive financial result marked the fourth consecutive quarter of favorable outcomes for the domestic automobile sector.