Tata Technologies IPO: Tata Tech files addendum to DRHP with SEBI

On Tuesday, October 3, 2023, Tata Technologies filed an addendum to its Draft Red Herring Prospectus (DRHP) with the market watchdog Securities and Exchange Board of India (SEBI).

In accordance with the addendum filed, the company’s issue will comprise an offer for sale of up to 9.57 crore shares. As part of the offer, Tata Motors will offload up to 8.11 crore shares, Alpha TC Holdings will offer up to 0.97 crore shares, and Tata Capital Growth Fund I will sell up to 0.48 crore shares.

“The offer for sale consists of (a) up to 81,133,706 Equity Shares by Tata Motors Limited, (b) up to 9,716,853 Equity Shares by Alpha TC Holdings Pte. Ltd. and (c) up to 4,858,425 Equity Shares by Tata Capital Growth Fund I, each representing up to 20%, 2.40% and 1.20%, respectively of Tata Technologies’ paid-up share capital,” added the filing.

JM Financial Limited, Citigroup Global Markets India Private Limited, and BofA Securities India Limited are the book-running lead managers (BRLM) to the issue.

Tata Tech IPO details:

The shares of the most-awaited IPO on D-Street will make their debut on both the NSE and BSE. In the offering, Tata Tech has reserved a portion for employees as well as Tata Motors shareholders. The allocated quota for Tata Motors shareholders is 10 per cent. “The maximum Bid Amount under the TML Shareholders Reservation Portion by an Eligible TML Shareholder shall not exceed Rs 200,000,” the addendum said.

“Employees eligible to buy shares in IPO can apply in the Employee Reservation Portion. They can apply at the cut-off price. The maximum bid amount under the TML shareholders reservation portion by an eligible TML Shareholder shall not exceed Rs 2 lakh. On the other hand, the maximum bid amount under the employee reservation portion by an eligible employee should be under Rs 5 lakh," read the addendum.

The proceeds from the issue will be received by the shareholders paring their stake through the offer for sale.

Tata Technologies is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (“OEMs”) and their Tier 1 suppliers.