Tata Technologies Ltd, a subsidiary of Tata Motors Ltd, has filed a draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO).
According to an exchange filing, the IPO comprises of an offer for sale (OFS) of up to 9.5 crore shares, representing approximately 23.60% of its paid-up share capital.
Through the offer for sale, parent firm Tata Motors Ltd will sell 8.1 crore shares, or 20% of the company.
Alpha TC Holdings Pte Ltd, which intends to sell 97.1 lakh shares (2.4%), and Tata Capital Growth Fund I, which intends to sell 48.58 lakh shares (1.2%) of Tata Technologies, are two additional selling stockholders in the IPO.
As per the DRHP, Tata Motors holds 74.69% of the equity share capital in Tata Technologies, while Alpha TC Holdings Pte Ltd holds 7.26%, and Tata Capital Growth Fund I holds 3.63%.
The offer is being made through the book-building process, in which not less than 15% of the offer must be made available to non-institutional investors and not less than 35% of the offer must be made available to retail individual investors. Not more than 50% of the offer may be allocated to qualified institutional buyers.
JM Financial Ltd, Citigroup Global Markets India Private Ltd, and BofA Securities India Ltd are the book running lead managers (BRLM) to the issue, whereas, Link Intime India Private Ltd is the registrar to the offer.
Tata Technologies is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers, and their tier 1 suppliers.
As per DRHP, the company's revenue from operations for the nine-month period ended December 31, 2022 and December 31, 2021 was ₹30,117.94 million and ₹26,073.03 million, respectively, and the revenue from operations for fiscals 2022, 2021 and 2020 was ₹35,295.80 million, ₹23,809.11 million, and ₹28,520.55 million, respectively.