Tata Technologies IPO: Company’s application awaiting SEBI approval
Tata Technologies’ IPO has been eagerly awaited in the market for some time now. The company has a good track record, and therefore, should not face any difficulty in obtaining SEBI’s approval. This issue could bring back the shine to the IPO market, which has not met investor expectations with several big-ticket issues such as LIC and Paytm last year. The primary market is waiting for issues that can bring happiness to investors.
What is the company’s business?
Tata Technologies is a global product engineering and digital services company, which is a unit of Tata Motors. Tata Motors owns 74.68% stake in the company. It provides product development and digital solutions services to several global original equipment manufacturers (OEMs). The company has 11,000 employees and 18 global delivery centers.
When did the company apply for an IPO?
Tata Technologies had applied to SEBI in March. It is waiting for the market regulator’s approval soon. This issue will be entirely an offer for sale (OFS). This means that the company will not issue new shares. The promoters of the company will sell their 9.57 crore shares. This will be 23.60% of the company’s paid-up share capital.
Will this issue be an OFS?
In the OFS, Tata Technologies’ parent company Tata Motors will sell its 8.11 crore shares. This is equivalent to 20% stake of Tata Motors in the company. In addition, Alpha TC Holdings will sell its 97.16 lakh shares, and Tata Capital Growth Fund I will sell its 48.58 lakh shares. There is no information available yet about the size of the IPO.
How was the company’s revenue growth?
During the nine months ending December 2022, the company’s revenue growth was 15% YoY. The company earned a revenue of Rs. 3,052 crore during this period. The services segment contributed 88% to the company’s total revenue. During this period, the company’s net profit was Rs. 407 crore.
What is the share price in the unlisted market?
In the unlisted market, Tata Technologies’ share price is around Rs. 850. The share was seen trading at around Rs. 750 a few days ago. At one time, the company’s share had reached a peak of Rs. 900. It is expected that the listing of this share could be done with a good premium.
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