The India Conglomerate Tata Group has filed papers with the SEBI to launch the Initial Public Offering (IPO) of Tata Technologies.
The IPO of Tata Technologies is purely an offer for sale by the promoter Tata Motors and two other existing stakeholders and doesn't involve any fresh issue of shares.
Tata Motors, in the filling, said, "We wish to inform that Tata Technologies, a subsidiary of Tata Motors Ltd, has informed the company that it has filed a draft red herring prospectus dated 9th March 2023 with the SEBI for an Initial Public Offering."
The IPO is an offer for sale (OFS) of up to 95708984 equity shares, representing nearly 23.6 percent of its paid-up share capital.
Currently, Tata Motors holds 74.42 percent in Tata Technologies, Alpha TC Holdings Pte Ltd, a Singapore-based investment firm managed by Tata Capital Advisors, owns 8.96 percent, while Tata Capital Growth Fund owns 4.48 percent.
In December, The Tata Motors board approved a partial divestment of its stake in Tata Tech through a public float.
The engineering unit of Tata Motors caters to automotive, aerospace, industrial heavy machinery, and others. As a global product engineering and digital services company, it helps companies in the convergence of digital technology and traditional engineering to develop better products.
In the nine months ending December 2022, the company reported a revenue of Rs 3,011.8 crore, recording a growth of 15.5 percent yearly. The company's profit for the nine months came in at Rs 407.5 crore.
It is the second IPO filed by the Tata Group since the listing of TCS in 2004. Earlier in December, satellite TV operator Tata Play had filed a 'pre-filed' DRHP or confidential IPO paper with Sebi, the first company to do so under the new regulations.
