Tata Technologies files DRHP for IP0 with SEBI- Excellent Investment Opportunities

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Engineering and product development digital services are offered by Tata Technologies. It serves a variety of industries, including the automotive, aerospace, and heavy industrial machinery sectors. It aids businesses in the fusion of conventional engineering and digital technologies to produce better goods.

Tata Technologies Ltd, a member of the Tata Group, filed DRHP after a 19-year period for IPO.

About Tata Technologies

A member of the Tata Group, Tata Technologies Limited offers original equipment manufacturers and their suppliers in the automotive and aerospace industries services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management. It is a Tata Motors subsidiary. The corporation operates in the Asia Pacific area, the Middle East, North America, and Europe.

Tata Technologies was established in 1989 and bought INCAT, a business with roots in Europe, in 2005. Tata Technologies’ corporate headquarters are in Pune, and it also has regional offices in ThaneOne Corporate Business IT Park, Thane, the UK, and Detroit, Michigan, in the United States (Warwick). The company employs more than 11,000 people globally, including about 4,000 professionals, and conducts business in 25 different countries. According to the Fortune India Infotech Industry ranking, it is the 15th largest IT business.

Tata Technologies Inc. purchased INCAT International, a UK- and US-based automotive and computer engineering firm, in August 2005 for £53.4 million. INCAT International was founded in 1989.

(DRHP) for an initial public offering (IPO)

The Securities and Exchange Board of India (SEBI) received the Draft Red Herring Prospectus (DRHP) for an initial public offering (IPO) from Tata Technologies, a division of Indian automaker Tata Motors. In an otherwise depressed market, Tata Motors’ shares rose 1.29% after the announcement.

Tata Technologies’ Business

Engineering and product development digital services are offered by Tata Technologies. It serves a variety of industries, including the automotive, aerospace, and heavy industrial machinery sectors. It aids businesses in the fusion of conventional engineering and digital technologies to produce better goods.

The business just opened its research center in Toulouse, France, and is a crucial supplier to Airbus. This was a component of its plan to accommodate

In principle, Tata Motors accepted the partial sale of its stake in Tata Technologies through an initial public offering (IPO) in order to better meet the product engineering and digital needs of the global aerospace and defense industry. In June of last year, it also became a member of the Foxconn-founded MIH Consortium, which promotes the creation of sustainable transportation solutions and fosters industry cooperation.

Tata Technologies IPO Details

The engineering division said that it will not sell any of the 95.7 million shares, or around 23.6% of its paid-up share capital, in the first public offering (IPO). Instead, Tata Capital Growth Fund will sell 4.9 million shares, Alpha TC Holdings will sell 9.7 million shares, and Tata Motors, which owns a 74.69% interest in the firm, will sell up to 81.1 million shares. In other words, no new shares are being issued as part of this IPO.

When TCS was listed in 2004 this is the company’s second initial public offering (IPO). The market regulator received a pre-filed RHP from Tata Play earlier, making it the first business to do so in accordance with the new rules.

Although the valuation of the IPO, from which the selling shareholders would get the cash, wasn’t made public, the company’s most recent repurchase valued it at 16,080 crores. According to experts, the offer amount might be at least Rs. 3,800 crores based on that assessment.

JM Finance, BofA Securities, and Citigroup Global Markets India Pvt. Ltd. are the issue’s principal book-running managers.

Tata Technologies Valuation

During the nine months that ended in December 2022, Tata Technologies generated revenue of 3,052.29 crores, representing an increase of 15.5% year over year (YoY). At the same time period, it reported a profit of 407.5 crores. The service division of the business generated 88% of the overall income. Its authorized share capital is 350 crores and its paid-up share capital is 811.83 crores.

Tata Technologies IPO Date

Tata Technologies has not yet determined its initial public offering (IPO) pricing, but Gorakshkar predicted that it will be at least four to five times more than the price at which Tata Motors purchased its interest in Tata Technology. So, according to Avinash Gorakshkar, Tata Motors is anticipated to gain greatly from Tata Technologies’ IPO.

Global Surfaces’ initial public offering (IPO) is scheduled to begin on March 13 and remain accessible for subscription through March 15. The pricing range, set by the firm, is Rs. 133-140.

Que.What about Tata Technologies business?

Ans. Tata Technologies Ltd provides services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to original equipment manufacturers and their suppliers in the automotive and aerospace sectors.

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