Tata Technologies IPO: Tata Motors' subsidiary files draft paper with SEBI

Tata Technologies IPO: Tata Technologies, a subsidiary of Tata Motors, has filed a draft red herring prospectus with the capital market regulator Securities and Exchange Board of India (SEBI) to raise funds via IPO, according to Zee Business channel report. Currently, Tata Motors holds 74.69 per cent stake in Tata Technologies. While Alpha TC Holdings Pte has 7.26 percent stake in the Pune headquartered company, Tata Capital Growth Fund I holds 3.63 per cent stake.

Tata Technologies' IPO could mark the first time in nearly two decades that the Tata Group has gone public. Tata Play, a direct broadcast satellite service provider, is also set to file offer documents with the market regulator soon.

In December last year, Zee Business had reported about Tata Motors' plan to partially divest its equity shares in Tata Technologies Limited through an initial public offering route. The IPO Committee of Tata Motors had 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 company had said in a filing.

Tata Technologies, founded in 1989 as a unit of Tata Motors, is a global engineering and product development digital services firm. Tata Technologies offers services to industries across aerospace, automotive, industrial heavy machinery and others.

JM Financial Ltd, BofA Securities and Citigroup Global Markets India are the lead managers to the issue.

Shares of Tata Motors closed at Rs 432.45 apiece on NSE after declining 1.56 per cent on Thursday. 

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