Investors are eagerly anticipating the upcoming initial public offering (IPO) of Tata Technologies, the first IPO from the Tata Group in 19 years. As market analysts speculate on valuations and expected IPO prices, Tata Technologies, a subsidiary of Tata Motors, plans to offer up to 9.571 crore shares, or 23.60% of its paid-up share capital, through an offer for sale (OFS) route.
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The OFS will involve Tata Motors selling a 20% stake in Tata Technologies, equivalent to 8.11 crore shares. Additionally, Alpha TC Holdings Pte and Tata Capital Growth Fund I will offload portions of their holdings, with Alpha TC Holdings Pte selling up to 97.16 lakh shares (2.40%) and Tata Capital Growth Fund I offering up to 48.58 lakh equity shares (1.20%). Currently, Tata Motors holds a 74.69% stake in Tata Technologies, while Alpha TC Holdings Pte and Tata Capital Growth Fund I hold 7.26% and 3.63% respectively.
JM Financial Ltd, Citigroup Global Markets India, and BofA Securities India have been appointed as book-running lead managers to the IPO, further enhancing investor confidence. The grey market premium (GMP) price for Tata Technologies IPO is currently estimated at Rs 83 per share, slightly lower than the previous week’s figure of Rs 100.
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Tata Technologies specializes in offering engineering services and providing product development and turnkey solutions to global original equipment manufacturers (OEMs) and their tier-1 suppliers. Competitors in this sector include KPIT Technologies, L&T Technology Services, and Tata Elxsi. The IPO is expected to generate significant interest due to the strong reputation of the Tata Group and Tata Technologies’ expertise in the engineering services domain.
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With the launch date yet to be announced, investors are eagerly anticipating the opportunity to participate in the Tata Technologies IPO. The company’s solid track record, along with its association with the renowned Tata Group, is expected to attract considerable attention from investors seeking exposure to the engineering services sector in India.
