Sebi approves Tata Technologies IPO

Market regulator Sebi has approved the IPO of Tata Technologies which would be the first public issue from the Tata Group after nearly two decades. It has had filed IPO papers with Sebi in March.

The issue is completely an offer for sale (OFS), under which the selling shareholders will offload up to 9.57 crore units representing 23.60% of its paid-up share capital.

Under the IPO, Tata Motors intends to sell 81,133,706 shares of its subsidiary. Two other shareholders - Alpha TC Holdings and Tata Capital Growth Fund I - of the company are also selling shares in the offer.

Hived off as a separate entity from Tata Motors, Tata Technologies is a leading global engineering services company offering product development and digital solutions to global original equipment manufacturers.

The company has deep domain expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries, such as in aerospace and transportation and construction heavy machinery.

For the nine months ended December 2022, the firm reported revenue from operations of Rs 3,011.79 crore against Rs 2607.30 crore for the nine months ended December 2021, representing a growth of 15.5%. 

The net profit of the company for the 9MFY23 period stood at Rs 407.47 crore versus Rs 331.36 crore for 9MFY22. The company’s Adjusted EBITDA margins have grown consistently over the years – from 16.50% in FY20 to 19.20% in 9MFY23.

JM Financial Limited, Citigroup Global Markets India Private Limited, and BofA Securities India Limited are the Book Running Lead Managers for the IPO.

Source: Media reports