Tata Tech Files Application For IPO: Tata Technologies, a Subsidy of Tata Motors Opens ‘Offer for Sale’ IPO in Next 6 Months.
After 19 years, Tata Group is about to launch Tata Technologies Ltd IPO (OFS), a subsidiary of Tata Motors. The SEBI has ticked the application filed by Tata Technologies for IPO release and the company is likely to release in the next 6 months.
The article provides information on the basis and reasons to invest in Tata Technologies, Key information on Tata Technologies IPO, business expansions, and how to apply for an IPO online.
Tata Tech IPO: Basic Information
- Tata Group released Tata Consultancy Services (TCS) IPO two decades ago in July 2004 and after 19 years, TATA Group is yet to release its next IPO in Tata Technologies. After fulfilling the official formalities SEBI has ticked for Tata Technologies IPO release which is likely to open through Offer For Sale (OFS) in Dalal Street in the next six months.
- Tata Technologies Ltd IPO gray market premium, GMP, began to price @INR 74 on 28 June 2023 and it geared up by INR 100 by the end of 10 July 2023.
- Established in 1989, Tata Technologies is a subsidiary of Tata Motors and it is a global product of engineering and digital services company, holding a stake of 74.69 percent of Tata Motors.
- The company plans to issue an Offer for sale, OFS, that shall make shareholders offload 9.57 crore units that comprise 23.60 percent of its paid-up share capital.
- In the upcoming IPO, Tata Motors sells 81,133,706 shares and two specific shareholders shall open to sell shares in the share markets. They are Alpha TC Holdings Pte (97.16) lakhs shares (2.40 %), and Tata Capital Growth Fund I (1.20%).
TATA Tech IPO Video Analysis
Stock Experts Say: Reasons to Invest in Tata Tech IPO
- Tata Group has high market credentials, trust, and legacy.
- Tata Technologies is a mid-cap company that offers services and technology solutions to the leading Original Equipment Manufacturers, OEMs, and tier-I suppliers.
- Tata Technologies play a key role in automotive ER&D services globally.
Simple Steps to Buy Tata Tech IPO Online:
- Open a Demat account with a leading online brokerage platform.
- In the process, complete the KYC and you can place an instant IPO order online.
- Important Note: You must maintain funds in your trading account and then follow the steps explained by your chosen stock brokerage company.
Key Information of the Tata Tech IPO
- Tata Technologies shall release an offer for sale, and IPO in the next six months. And, the expected size of the IPO is 9.57 crore shares. The company has a face value of ₹2 per share, and the price band of the shares is yet to be released.
- Tata Motors, which stands as a promoter of Tata Technologies is set to sell promoter holding Pre-IPO (76.69%), and promoter holding post-IPO (53.10%).
- The net issue is broken into three parts and the percentage of allotment is in this manner, Qualified Institutional Buyer (QIB) (>= 50 percent) Non-Institutional Investor (NII) (>=15 percent), & Retail allocation (RA) (>=35).
Financial Details for FY 2019-2020:
EBITDA (₹515.36 crores), EBITDA Margin (adjusted) (16.50%), EPS (₹6.20), Current Assets (₹1,349.35 crores), & Current Liabilities (₹452.66 crores).
Buy Tata Technologies Ltd: Good Business Expansion
With ample progress in Tata Technologies, you can see this IPO as a perfect business opportunity.
Tata Technologies have penetrated deeply into the automobile industry and this resulted in the easy adoption of industries like aerospace, transportation, and construction of heavy machinery.
In the business spectrum, the company is divided into two sectors, likely, services, and technology solutions. And, it holds a tailored portfolio that takes better care of clients.