Tata Technologies IPO: All you need to know

Tata Technologies IPO: Domestic automotive manufacturing company Tata Motors has announced its plan to partially divest its equity shares in Tata Technologies Limited through an initial public offering route.

The IPO Committee of Tata Motors has accorded its in-principle approval for divesting the stake.

"...Board of Directors of Tata Motors Limited (the “Company”)], at its meeting held today, i.e., on December 12, 2022 has accorded its in-principle approval to explore the possibility of partial divestment of the Company’s investment in Tata Technologies Limited [“TTL”], a subsidiary of the Company, through an IPO route..," the official statement on the exchange filing read.

Tata Technologies IPO

As per the exchange filing, Tata Technologies IPO would be subject to market conditions, applicable approvals, regulatory clearances, including observations from the Securities and Exchange Board of India and certain other considerations.

The proposed IPO could be among Tata Group's first in years, with direct broadcast satellite service provider Tata Play also set to file offer documents with the market regulator soon, according to a Reuters report.

Tata Technologies is a global engineering and product development digital services firm. Tata Technologies offers services to industries across aerospace, automotive, industrial heavy machinery and others. Read- Landmark car IPO Review by Anil Singhvi: Subscribe or avoid? Check recommendation here 

As per information available on the company's website, Tata Technologies had clocked revenue of USD 473.5 million in FY22, a PTI report said.

Tata Technologies was founded in 1989 as a unit of Tata Motors. The automaker held a 74.43 per cent stake in the company as of March 31, the latest annual report showed, a Reuters report said.

Tata Motors in 2018 called off a deal to sell about 43 per cent stake in Tata Technologies to private equity firm Warburg Pincus for $360 million, citing delays in securing regulatory approvals and performance not meeting thresholds, the report said.

The 2022 fiscal annual report showed increased sales at Tata Technologies drove a 46 per cent jump in Tata Motors' revenue from other operations.

The Tata conglomerate had 29 publicly listed companies with a combined market capitalisation of $314 billion as of end 2021.

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