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Tata Technologies IPO : Set to Break Ground with First Tata Group IPO in Two Decades

Tata Technologies IPO: Set to Break Ground with First Tata Group IPO in Two Decades

Tata Tech­nolo­gies Lim­it­ed, a whol­ly-owned sub­sidiary of Tata Motors Lim­it­ed, is poised to make his­to­ry by becom­ing the first Tata Group com­pa­ny to go pub­lic in near­ly two decades. The offer-for-sale (OFS) is sched­uled for Novem­ber 22, mark­ing a sig­nif­i­cant event for the con­glom­er­ate. Notably, this is the first ini­tial pub­lic offer­ing (IPO) from the Tata Group since the icon­ic Tata Con­sul­tan­cy Ser­vices (TCS) went pub­lic in 2004. Tata Tech­nolo­gies IPO date is from Novem­ber 22–24.

The IPO involves up to 60,850,278 equi­ty shares, con­clud­ing the bid­ding process on Novem­ber 24. The OFS com­po­nents include up to 46,275,000 equi­ty shares offered by the com­pa­ny itself, up to 9,716,853 by Alpha TC Hold­ings Pte Ltd, and up to 4,858,425 by Tata Cap­i­tal Growth Fund I. These rep­re­sent stakes of up to 11.41 per­cent, 2.40 per­cent, and 1.20 per­cent, respec­tive­ly, of the paid-up equi­ty share cap­i­tal of Tata Tech­nolo­gies Lim­it­ed, as dis­closed in an exchange fil­ing on Novem­ber 13.

Tata Tech­nolo­gies had sub­mit­ted its draft IPO papers to the Secu­ri­ties and Exchange Board of India (SEBI) on March 9. The issue size under­went adjust­ments fol­low­ing Tata Motors’ strate­gic move to divest 9.9 per­cent of its stake in Octo­ber 2023. This stake sale, val­ued at an enter­prise worth Rs 16,300 crore (about $2 bil­lion), saw new investors enter­ing the scene. TPG Rise Cli­mate SF Pte, a cli­mate-focused pri­vate equi­ty fund, secured a 9 per­cent stake, while the Ratan Tata Endow­ment Foun­da­tion acquired the remain­ing shares. Pri­or to the stake sale, Tata Motors held a 74.69 per­cent stake in Tata Tech­nolo­gies.

The stake sale aligned with Tata Motors’ delever­ag­ing agen­da, as com­mu­ni­cat­ed in a fil­ing on Octo­ber 13. By the end of the Sep­tem­ber quar­ter, the automak­er had suc­cess­ful­ly reduced its net auto­mo­tive debt to Rs 38,700 crore, pro­gress­ing towards its goal of achiev­ing a net debt-free domes­tic busi­ness by FY24.

Tata Tech­nolo­gies Lim­it­ed is a glob­al engi­neer­ing and prod­uct devel­op­ment dig­i­tal ser­vices com­pa­ny that oper­ates as a whol­ly-owned sub­sidiary of Tata Motors Lim­it­ed, one of the flag­ship com­pa­nies of the Tata Group. Estab­lished in 1989, Tata Tech­nolo­gies has grown to become a lead­ing play­er in the engi­neer­ing and tech­nol­o­gy solu­tions domain, cater­ing to a diverse range of indus­tries.

Key Aspects of Tata Technologies:

  1. Engi­neer­ing and Design Solu­tions: Tata Tech­nolo­gies spe­cial­izes in pro­vid­ing engi­neer­ing and design ser­vices, help­ing com­pa­nies bring inno­v­a­tive prod­ucts to mar­ket. Their exper­tise spans across var­i­ous indus­tries, includ­ing auto­mo­tive, aero­space, indus­tri­al machin­ery, and con­sumer elec­tron­ics.
  2. Dig­i­tal Trans­for­ma­tion: The com­pa­ny is at the fore­front of dig­i­tal trans­for­ma­tion, lever­ag­ing cut­ting-edge tech­nolo­gies such as arti­fi­cial intel­li­gence, machine learn­ing, and the Inter­net of Things (IoT) to enhance prod­uct devel­op­ment process­es and improve over­all effi­cien­cy.
  3. Glob­al Pres­ence: With a sig­nif­i­cant glob­al foot­print, Tata Tech­nolo­gies oper­ates in key mar­kets around the world, includ­ing North Amer­i­ca, Europe, and the Asia-Pacif­ic region. This glob­al pres­ence allows them to serve clients on a multi­na­tion­al scale.
  4. Prod­uct Life­cy­cle Man­age­ment (PLM): Tata Tech­nolo­gies is known for its pro­fi­cien­cy in Prod­uct Life­cy­cle Man­age­ment, offer­ing solu­tions that stream­line the entire prod­uct devel­op­ment process. PLM is cru­cial for man­ag­ing the life cycle of a prod­uct from con­cept through design, man­u­fac­tur­ing, and ser­vice.
  5. Inno­va­tion and Research: The com­pa­ny places a strong empha­sis on inno­va­tion and research to stay ahead in the rapid­ly evolv­ing tech­no­log­i­cal land­scape. This com­mit­ment to stay­ing at the fore­front of tech­no­log­i­cal advance­ments enables Tata Tech­nolo­gies to deliv­er state-of-the-art solu­tions to its clients.
  6. Col­lab­o­ra­tion with Tata Group: As part of the Tata Group, Tata Tech­nolo­gies col­lab­o­rates with oth­er enti­ties with­in the con­glom­er­ate to lever­age syn­er­gies and pro­vide com­pre­hen­sive solu­tions. This inte­gra­tion allows them to tap into the col­lec­tive exper­tise of the Tata ecosys­tem.

Tata Tech­nolo­gies has played a piv­otal role in sup­port­ing indus­tries with their engi­neer­ing and dig­i­tal ser­vices, con­tribut­ing to the advance­ment of tech­nol­o­gy and inno­va­tion. As it con­tin­ues to evolve and expand its reach, the com­pa­ny remains a key play­er in the glob­al engi­neer­ing and tech­nol­o­gy solu­tions land­scape.

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