With Tata Technologies, the profitable division of Tata Motors, seeking to list its shares in the current fiscal and use the revenues to extend its operations to new clients, a Tata group company is planning to sell shares to individual investors after almost 18 years.
In-depth details about Tata Tech of Tata group plans for IPO by fiscal-end as the first in 18 years:
Tata Technologies is thinking of going public in the first quarter of FY24, which would be the first IPO from a Tata Group company since the year 2004 when IT behemoth TCS listed its shares. Sources inform ET The business may now submit a draught red herring prospectus to the Securities and Exchange Board of India by the end of the following quarter.
According to insiders, merchant bankers are in contact with Tata Technologies, a global product engineering, and digital services division of Tata Motors, over the prospective offering.
The anticipated equity offer from Tata Technologies is probably going to include both new equity and an offer for the sale of shares. According to sources, the corporation will likely sell a minimum of 10% of its ownership via equity sale. In the proposed offering, the Tata Group founders, led by Tata Motors, would sell shares of the company.
With a roughly 72% stock position, Tata Motors is Tata Technologies’ largest shareholder. Other Tata Group companies and Alpha TC Holdings, a Singapore-based investment company supported by Mizuho Securities, jointly possess the majority of the remaining equity.