Tata Technologies is poised to mark a significant milestone as it gears up for its initial public offering (IPO), heralding a momentous event for the esteemed Tata Group. This IPO announcement is particularly noteworthy, considering it is the first of its kind from the conglomerate since the resounding success of Tata Consultancy Services (TCS) back in 2004, which captured immense market attention.
After an impressive hiatus of nearly two decades, Tata Group is preparing to embark on a new journey in the primary market with the impending launch of its IPO through Tata Technologies. The company is strategically planning to unveil its public issue on November 22, adopting an offer-for-sale (OFS) approach.
This forthcoming IPO stands out not just as a significant financial event but also as a testament to the strategic initiatives undertaken by the Tata conglomerate. As they prepare to step into the IPO realm once again, it underscores the confidence and robustness of Tata Technologies, mirroring the confidence previously showcased during the inception of TCS.
The decision to enter the primary market after such a prolonged interval reflects Tata Group’s commitment to leveraging market opportunities while unveiling Tata Technologies’ potential on a broader platform. This IPO launch could potentially signal a new chapter of growth and expansion for Tata Technologies while further solidifying the group’s footprint in the dynamic landscape of public markets.
The Company has received communication from Tata Technologies Limited, informing about the filing of the Red Herring Prospectus (RHP) dated November 13, 2023. The RHP was lodged with the Registrar of Companies in Pune, Maharashtra, marking a significant step in the process of the upcoming Initial Public Offering (IPO). This IPO will involve an Offer For Sale (Offer) of a total of 60,850,278 equity shares for cash. The offering will consist of (a) up to 46,275,000 Equity Shares by the Company, (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. These represent approximately 11.41%, 2.40%, and 1.20%, respectively, of the total paid-up Equity Share Capital of Tata Technologies Limited. The exchange filing on November 13 conveyed these details.
Earlier, Tata Technologies Limited, a subsidiary of Tata Motors Limited, had previously submitted a Draft Red Herring Prospectus (DRHP) dated March 9, 2023, to the Securities and Exchange Board of India (SEBI). This submission outlined the company’s intentions for an Initial Public Offering (IPO), paving the way for the subsequent filing made on November 13, 2023.