Tata Technologies set IPO price: Tata Technologies, a part of Tata Motors, has shared that its first public offering (IPO) will be priced between Rs 475-500 per share, totaling Rs 3,000 crores. The initial phase for big investors starts on November 21, and the public can join in on November 22, closing the opportunity on November 24.
This IPO is a significant move, being the first from the Tata group in almost 20 years. It involves selling 60.85 million shares in what’s known as an offer-for-sale (OFS). Tata Consultancy Services was the last Tata group company to go public back in 2004. Interestingly, they’ve set aside 10 percent for eligible Tata Motors shareholders.
Tata Technologies set IPO price
Leading this financial venture are JM Financial Ltd, Citigroup Global Markets India Pvt. Ltd., and BofA Securities India Ltd. Warren Harris, the CEO of Tata Technologies, shared positive financial news, stating, “Last year, we made 7 million in revenue. In the first six months of this year, it’s 6 million. Our profit margin was 18.6 percent last year, and the best part—we have no debts and a solid cash reserve.”
Tata Tech specializes in providing product development and digital solutions, mainly in the automotive sector, but they serve clients in aerospace, transportation, and heavy machinery too.
Looking ahead, Harris mentioned their goal to expand beyond automotive, saying, “Currently, 90 percent of our services are in automotive, but we’ve been investing in aerospace and heavy machinery for over a decade. We recently got accredited by Airbus, and we’re setting up the necessary IT infrastructure as required by regulated companies like Airbus.”
It’s interesting to note that Tata Tech initially planned to sell 95.71 million shares, but this reduced by more than a third. In a surprising move, Tata Motors sold a 9.99 percent stake in Tata Tech for Rs 1,613.7 crores in October, valuing the company at about Rs 16,137 crores.