Tata Motors Ltd subsidiary Tata Technologies Ltd has filed a draft red herring prospectus with Securities and Exchange Board of India (SEBI) to raise funds via initial public offering (IPO). The issue comprises an offer for sale of up to 95.71 million equity shares for cash (Equity Shares), representing approximately 23.60 per cent of its paid-up share capital (IPO), according to the exchange filing.
Additionally, Tata Motors will sell 81.13 million shares or 20 per cent stake through an Offer for Sale (OFS). Other shareholders that will sell their stakes: Alpha TC Holdings Pte Ltd will sell 9.72 million shares; Tata Capital Growth Fund I will sell 4.86 million shares. Each of these will represent up to 20 per cent, 2.40 per cent, and 1.20 per cent respectively of Tata Technologies paid-up share capital.
Tata Motors currently holds 74.69 per cent stake in the firm while Alpha TC Holdings Pte has 7.26 percent stake. Tata Capital Growth Fund I has 3.63 percent stake in the company. According to a Bloomberg report, JM Financial Ltd, Citigroup Global Markets India Pvt and BofA Securities India Ltd will manage the share sale. This is the second IPO proposed by the Tata Group. It had listed Tata Consultancy Services Ltd. in 2004. Satellite television operator Tata Play Ltd had submitted a pre-filed DRHP in December.
Tata Technologies is a global engineering and product development digital services firm and offers services across industries like automotive, aerospace, industrial heavy machinery and others. Its clients include Airbus SE, McLaren, Honda
The company mostly relies on the Tata Group for business, especially Tata Motors and Jaguar