The issue size is estimated at ₹2,890 crore at a lower price band and ₹3,042 crore at the upper price band. The issue will close on November 24.
This marks the first issue from the Tata Group, India’s largest conglomerate, in nearly two decades. The Tata Group’s last IPO was by Tata Consultancy Services (TCS) in 2004, when it launched a ₹5,500 crore offer. According to brokers, Tata Technologies is trading at premium of about ₹340 in the unofficial market.
At the upper end of the price band, the company is valued at ₹20,300 crore, approximately $2.5 billion. Tata Tech’s previous valuation stood at around ₹16,300 crore, or $2 billion, when private equity fund TPG acquired a 9% stake in the company last month at a ₹401.8 per share.
The issue is entirely an offer for sale (OFS) by the existing shareholders. Under the OFS, parent Tata Motors will sell 4.62 crore shares, while Alpha TC Holdings and Tata Capital Growth Fund will offload 97.1 lakh shares and 48 lakh shares, respectively. Bids can be made for a minimum of 30 shares and in multiples of 30 shares thereafter.
Tata Technologies is a leading global engineering services company offering product development and digital solutions to global original equipment manufacturers (OEMs). The company services include concept design, tear-down and benchmarking, vehicle architecture, body and chassis engineering, electrical and electronics systems, and diagnostics. It has a workforce of over 11,000 employees spread across 18 global delivery centres. A 10% of the issue is reserved for Tata Motors’ eligible shareholders.
The company had filed its IPO papers with Sebi in March this year and received approval from the regulator in June.JM Financial, Citigroup Global Markets India, and BofA Sec India are the book-running lead managers to the IPO.
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