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Tata Technologies, a flagship company of the Tata Group, has announced the pricing details for its much-anticipated Initial Public Offering (IPO), marking the conglomerate’s return to the public market after nearly 20 years. The IPO, set in the price band of INR 475-500 per share, is scheduled to be open for subscription from November 22 to November 24, 2023. The company aims to raise INR 3,042.51 crore through an offer-for-sale (OFS) mechanism, featuring divestments by promoters and key investors.
Tata Motors, the primary promoter, is slated to offload 4.62 crore equity shares valued at INR 2,313.75 crore, while Alpha TC Holdings Pte Ltd and Tata Capital Growth Fund I will sell shares amounting to INR 485.84 crore and INR 242.92 crore, respectively.
The Pune-based engineering services firm, known for its global solutions, has allocated shares for employees and Tata Motors shareholders. The net issue, excluding these reserved shares, is divided with 50% for qualified institutional buyers, 15% for high net worth individuals, and 35% for retail investors.
Demonstrating robust financial performance, Tata Technologies reported an impressive 42.8% year-on-year growth in net profit, reaching INR 624 crore for FY23. Additionally, the company achieved a 25% increase in revenue, totaling INR 4,414.2 crore. The first half of FY24 witnessed a remarkable 36% surge in profits, reaching INR 351.9 crore, accompanied by a 34% rise in revenue to INR 2,526.7 crore.
The IPO, managed by JM Financial, Citigroup Global Markets India, and BofA Securities India, represents a significant milestone for the Tata Group as it strategically re-enters the public market.
