News

Published: Mar 11, 2023
Updated: Mar 11, 2023

Tata Technologies Files for IPO: All You Need to Know About the Company

Tata Technologies, a global engineering services company, has filed a draft red herring prospectus with the Securities and Exchange Board of India to initiate an IPO and raise funds. This marks the first time a Tata Group company has gone public on the domestic bourses since Tata Consultancy Services in 2004. The IPO is a pure offer for sale and consists of up to 95.71 million shares. Tata Motors, Alpha TC Holdings Pte, and Tata Capital Growth Fund I will offer up to 81.13 million shares, 9.72 million shares, and 4.86 million shares, respectively.

Global Engineering Services Company

Tata Technologies offers product development and digital solutions to global original equipment manufacturers, utilizing domain expertise in the automotive industry to serve clients in other industries such as aerospace, transportation, and construction heavy machinery.

First IPO After TCS

Tata Motors Limited is the promoter of Tata Technologies, and the IPO is significant for the salt-to-software conglomerate. As per the prospectus, the average cost of acquisition per equity share acquired by the selling shareholders is Tata Motors Limited at Rs. 7.40 per share, Alpha TC Holdings Pte. Ltd. at Rs. 25.10 per share, and Tata Capital Growth Fund I at Rs. 25.10 per share.

Impressive Financials

According to the DRHP, Tata Technologies reported revenue from operations of Rs. 3011.7 crore for the nine-month period ended December 31, 2022, and Rs. 2607.3 crore for the same period in 2021. The company reported a profit of Rs. 407.4 crore for the nine-month period ended December 31, 2022, compared to Rs. 331.3 crore in the same period last fiscal year. The company also reported record numbers for the year ended 31st March 2022, with revenue of Rs. 3529.6 crore, an underlying operating profit of Rs. 645.6 crore, and a profit after tax of Rs. 437.0 crore.

Employees and Delivery Centers

Warren Harris is the CEO of Tata Technologies, which has a total of 11,081 employees catering to clients across North America, Europe, and the Asia-Pacific region. The company has 18 global delivery centres in North America, Europe, and the Asia-Pacific region.

Marks a significant event for the Tata Group

Tata Technologies' IPO marks a significant event for the Tata Group, and the company's impressive financials, global reach, and expertise in engineering services make it an attractive prospect for investors.