SEBI Approves Tata Tech IPO, The First Public Issue From The Group In 20 Years

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Tata Technologies IPO: Stock market regulator SEBI has approved Tata Technologies for an IPO. Sebi’s approval paves the way for an IPO for a Tata group company for the first time in two decades. Tata Technologies has filed a draft paper with SEBI for an IPO in March 2023.

All shares in Tata Technologies’ IPO will be sold through an offer for sale. That means existing investors will sell 9.57 crore shares in the IPO, which is equal to 23.60 percent stake. Tata Technologies to launch IPO. Tata Group brought the IPO of TCS, the largest company in the IT sector, 19 years ago in 2004.

9.57 crore shares will be sold

It is a subsidiary of Tata Motors. According to the draft paper, the company will sell about 9.57 crore shares through this IPO. Out of it, Tata Motors has its Rs. 8.11 crore will sell shares. Of the remaining shares, Alpha TC Holdings will sell 97.2 lakh shares and Tata Capital Growth Fund 1 will sell 48.6 lakh shares of its holding.

The IPO came in the year 2004

Earlier, the IPO of Tata Consultancy Services (TCS), a Tata Group company, came in the year 2004. Today TCS is the second most valuable company in the country. Tata Technologies is one of the world’s leading companies in the digital, engineering and technical services sector. This IT stock has given good returns to the investors. The market capitalization of this company is around 11.7 lakh crore rupees. It may be noted that Tata Motors had given in-principle approval for partial disinvestment in Tata Technologies through IPO in December last year.

The Tata Technologies IPO will be led by JM Financial Ltd, BofA Securities and Citigroup Global Markets India. The company had only filed its IPO papers with SEBI. However, no information has been given on how much funds will be raised through the IPO and what will be the price band of the IPO.

Tata Technologies was started 33 years ago. Tata Technologies is engaged in product engineering and digital services business. The company also provides services to the automotive, industrial heavy machinery and aerospace sectors. In addition, the company is largely dependent on the TATA Group for business, notably Tata Motors and Jaguar Land Rover Company.