CHENNAI: The first initial public offer (IPO) from Tata group after 2004 will be open for subscription from November 22. Subscription for the IPO of Tata Technologies, a subsidiary of Tata Motors, will close on November 24. This IPO is an offer for sale of up to 60,850,278 equity shares. It has filed the red herring prospectus with the Registrar of Companies at Pune, Maharashtra dated Monday, Tata Motors said in an exchange filing on Monday.
Through an offer for sale (OFS) promoters and existing shareholders reduce their holding in a transparent manner. Through the IPO, Tata Motors will offload 11.41% stake in the company, Alpha TC Holdings Pte. Ltd will offload 2.4% and Tata Capital Growth Fund I 1.20%. The selling shareholders get the entire proceeds. Tata Technologies will not receive any proceeds from the offer.
This is the first IPO from the group after TCS listing in 2004. Tata Technologies had filed a draft red herring prospectus (DRHP) dated March 9, 2023, with the Securities and Exchange Board of India (SEBI) for an initial public offering.
This IPO provides a reservation of up to 6,085,027 shares (10% of the Offer) for subscription by individual traders and Hindu Undivided families who are public equity shareholders (including shareholders holding ordinary shares and ‘A’ ordinary shares in Tata Motors).
JM Financial, CitiGroup Global Markets India and Bofa Securities are listed as book running lead managers. Tata Technologies in DRHP stated its total income at Rs 3,578 crore and profit at Rs 436 crore for FY22. Profit for the nine month period between April - December 2022 stood at Rs 407 crore. Its primary business is engineering, research and development formanufacturing, focusing on automotive, aerospace and transportation, construction heavy machinery industries.