NEW DELHI: Home-gown auto major Tata Motors’ board has given approval for partial divestment of the company’s stake in Tata Technologies through the initial public offering (IPO) route. Tata Technologies is a global product engineering and digital services company.
“We wish to inform you that the IPO Committee [duly constituted by the Board of Directors of Tata Motors Limited], at its meeting held today, i.e., on December 12, 2022, has accorded its in-principle approval to explore the possibility of partial divestment of the company’s investment in Tata Technologies Limited, through an IPO route at an opportune time, subject to market conditions, applicable approvals, regulatory clearances,” said Tata Motors on Monday in a stock exchange filing.
Tata Motors added that it will make further announcements of all material developments relating to IPO, as and when required. If Tata Technologies gets all the green lights, it would become the first IPO from Tata Group in 18 years. It would be also the first under the current Group chairman N Chandrasekaran who took over in January 2017.
IT major TCS was the last Tata company to go public in 2004. Another Tata Group company, Tata Play, is also gearing up for an IPO. Tata Motors held a 74.43 per cent stake in Tata Technologies as of March 31.