Tata Motors is planning to publicly list its subsidiary Tata Technologies and has appointed bankers for the initial public offering (IPO), as per reports. This is the first public float from the Tata Group since 2004, after the ₹ 5500 crore IPO of Tata Consultancy Services, India’s largest software services exporter. Further, it will be the first under the tenure of Tata Group chairman N Chandrasekaran who took over in January 2017.
The product engineering and digital services company has appointed Citigroup to explore options for the public issue, as per reports. However, Tata Technologies and Citigroup declined to comment.
Some of the major shareholders of the company are Tata Motors (72.48%), Alpha TC Holdings (8.96%) and Tata Capital Growth Fund (4.48%). Some of the other investors include Tata Motors Finance, Tata Enterprises Overseas, Zedra Corporate Services, and Patrick Raymon McGoldrick.
Tata Technologies reported a 48% jump in revenues to ₹3,530 crores, while profits surged 83% to ₹437 crores for the fiscal year ended March 31, 2022. It employs 9,300 people across the world, serving from facilities in North America, Europe, and the Asia Pacific region.
It has 18 global delivery centres and four business segments: engineering, research, and development (ER&D) services, digital enterprise solutions (DES), education offerings, and value-added reselling and product offerings.
Another Tata Group company, Tata Sky is also planning to launch its IPO to provide an exit to investors, including Disney. The satellite television business is yet to file its draft red herring prospectus with the Securities and Exchange Board of India (SEBI).
Written By – Simran Bafna
