Tata Group companies are known for their consistent returns to their shareholders. But it has been almost 2 decades since the last Tata company IPO hit. That was in 2004 when Tata Consultancy Services or TCS, the crown jewel of the salt to the software industry.
Investors can rejoice, as the Tata Group is planning IPO for two companies: Tata Play and Tata Technologies.
Tata Play IPO
Formerly known as Tata Sky, Tata Play recently became the first company in India to file confidential IPO papers on November 29. Under this new arrangement, companies can file for IPO while keeping their details private until they decide to launch the IPO.
Tata Sons presently owns a 62.2% stake in the company. It is planning to raise Rs 2,500 crore from the primary market through a mix of offers for sale (OFS) and fresh issues of shares.
Tata Play rebranded itself this year from Tata Sky to reflect its diversified business of OTT services and Pay TV services.
It is a joint venture between Tata Sons and TFCF Corporation, a company of Disney. Disney has 30% stake in the media company: 9.8% through TFCF and 20% directly.
Tata Technologies IPO
Apart from Tata Play, Tata Technologies is another Tata company that has been considered for the initial public offering. Tata Technologies is a wholly-owned subsidiary of Tata Motors Ltd.
The board of the car maker has announced a partial divestment of the subsidiary.
In a recent filing, it communicated, “We wish to inform you that the IPO committee (duly constituted by the board of directors of Tata Motors) at its meeting held on December 12, 2022, has accorded its in-principle approval to explore the possibility of partial divestment of the company’s investment in Tata Technologies, a subsidiary of the company, through an IPO route at an opportune time.”
The IPO of Tata Technologies will be subject to the business environment, stock market conditions, various approvals, regulatory clearances, and more. Tata Motors presently owns a 74.42% stake in the subsidiary as per its annual report for 2022-23.
Established in 1989, Tata Technologies provides technology solutions in automobile, industrial machinery, aerospace, and adjacent engineering and manufacturing segments.
Written By – Vikalp Mishra
