By The Daily Bharat Express (Business-Desk): Tata Technologies Limited, a wholly owned subsidiary of Tata Motors Limited, is all set to open its offer-for-sale on November 22. This would be the first Tata Group company in almost twenty years to file an IPO after Tata Consultancy Services (TCS) went public in 2004. The Tata Tech OFS will close on November 24.
Tata Technologies, which provides engineering services for companies in the auto and aerospace sectors among others, had filed its draft red herring prospectus in March with the Securities and Exchange Board of India for an initial public offering. Tata Technologies IPO is structured as an Offer for Sale (OFS), where existing shareholders plan to sell up to 9.57 crore equity shares. This is about 23.60 per cent of the company’s total paid-up share capital. The issue of up to 60,850,278 equity shares will close for bidding on November 24.
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The OFS will comprise up to 46,275,000 equity shares by the company, up to 9,716,853 by Alpha TC Holdings Pte Ltd, and up to 4,858,425 by Tata Capital Growth Fund I, representing up to 11.41 per cent, 2.40 per cent, and 1.20 per cent, respectively, of the paid-up equity share capital of Tata Technologies Limited, the company informed in an exchange filing on November 13.
“We now wish to inform you that the Company has been informed by Tata Technologies Limited that it has filed today, the RHP dated Monday, November 13, 2023, with the Registrar of Companies, Maharashtra in Pune. This IPO is an Offer for Sale (“Offer”) of up to 60,850,278 equity shares for cash (“Equity Shares”), comprising of an offer for (a) up to 46,275,000 Equity Shares by the Company; (b) up to 9,716,853 Equity Shares by Alpha TC Holdings Pte. Ltd.; and (c) up to 4,858,425 Equity Shares by Tata Capital Growth Fund I, each representing up to 11.41 per cent, 2.40 per cent, and 1.20 per cent, respectively, of the paid-up Equity Share Capital of Tata Technologies Limited,” the company informed in an exchange filing on November 13.
The share allocation for the IPO will be divided among various investor classes, including Qualified Institutional Buyers (QIBs) who will receive 50 per cent, retail investors who will get 35 per cent, and non-institutional investors who will be allotted the remaining 15 per cent.
This IPO provides, inter alia, a reservation of up to 6,085,027 Equity Shares, i.e., 10 per cent of the Offer, for subscription by eligible shareholders of TML, i.e., Individuals and HUFs who are the public equity shareholders (including shareholders holding Ordinary Shares and ‘A’ Ordinary Shares in TML and excluding such persons who are not eligible to invest in the Offer under applicable laws, rules, regulations and guidelines) as on the date of the filing of the RHP, i.e., Monday, November 13, 2023, the regulatory filing said.
Earlier it was reported that Tata Tech is in contact with US asset managers Ghisallo Capital, Oaktree Capital, and Key Square Capital, as well as Blackrock and Morgan Stanley for possible participation in the deal at a valuation of $2.5 billion, Reuters said quoting sources.
On November 2, Tata Motors reported a consolidated net profit of Rs 3,783 crore in the July-September quarter, on the back of British arm Jaguar Land Rover. This is the fourth successive quarter of positive results for the homegrown auto major.
The homegrown automaker posted a consolidated net loss of Rs 945 crore in the second quarter last fiscal year.
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