Tata Technologies Ltd, a subsidiary of the automotive giant Tata Motors (NYSE:TTM) Ltd, has unveiled plans for an initial public offering (IPO) where existing shareholders will sell more than 15% of the company's shares. The IPO, which is part of a restructuring of shareholding, is set to open for subscription next Wednesday and will close on Friday.
The engineering and digital services provider filed its IPO with the Securities and Exchange Board of India (Sebi) back on March 9, marking a significant move as it's the first IPO from the Tata Group since Tata Consultancy Services (NS:TCS)' offering in 2004. The company lodged its Red Herring Prospectus with the Maharashtra Registrar of Companies on Monday, November 13.
The IPO does not aim to raise new funds for Tata Technologies but is designed to restructure its shareholding. The parent company Tata Motors currently holds a 74% stake and plans to offload an 11.41% stake amounting to 46.2 million shares. Other stakeholders such as Alpha TC Holdings and Tata Capital Growth Fund I will divest stakes of 2.4% and 1.2%, respectively.
This announcement comes after TPG Rise Climate acquired a 9.9% stake in the company for ₹1,613.7 crore in October, which valued Tata Technologies at ₹16,300 crore. The sale reduced Tata Motors' initial plan to sell 81 million shares by nearly half.
The total number of shares offered through the offer for sale (OFS) amounts to 60,850,278 equity shares. The official price band for the IPO is expected to be announced soon.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.