August 7, 2022
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Tata Technologies plans IPO , the first by Tata group in 18 years
After almost 18 years, a Tata group company is planning to sell shares to retail investors with Tata Technologies, the profit making arm of Tata Motors & planning to list its shares in the current fiscal
Once launched, the initial public offer will be the first from the Tata group since the group holding firm, TCS listed its shares in 2004. The company is in talks with several banks, including Citibank, to manage the share sale. Tata Motors currently owns 74 per cent in Tata Technologies and remaining stake is owned by other Tata group firms. The Tata group is likely to dilute around 25 per cent with the share sale though a final decision will be taken once the markets improve.
The company earned revenues of Rs 2,648 crore in the first nine months of fiscal 2022 and a net profit of Rs 330 crore.
Bankers said the company earns its income from three industrial segments–automotive, aerospace and industrial machinery, but derives the biggest chunk of its revenue from the automobile segment.
As of now, around 40 per cent of Tata Technologies’s income comes from its top two captive customers : Tata Motors and JLR, which analysts say poses a significant revenue concentration risk for the company.
The firm’s IPO-plan comes at a time when several top companies are planning to list their unlisted companies to unlock value for the holding firms. Reliance Industries, India’s biggest company in market capitalisation, is planning to list its wireless telephony and retail arms.
About the company :
Tata Technologies Limited (TTL) is a global product engineering and digital services company focused on fulfilling its mission of helping the world drive, fly, build, and farm by enabling global OEMs and their ecosystem of partners across the automotive, industrial machinery, aerospace, and adjacent verticals engineer, manufacture, and realize better products
There are two components to the company’s value proposition; the first one is outsourced product engineering services for manufacturing customers, thereby helping them conceptualize, design, and develop better products, and the second one is helping them identify and deploy technologies and solutions that are used to manufacture, service, and realize better products.
Tata Technologies has over 9300 employees serving global customers across three continents through its uniquely balanced on-shore/offshore global delivery model that enables it to provide aligned on-shore customer proximity required to support the iterative nature of product development services together with the capacity and cost-effectiveness of offshore locations.
The company has 18 global delivery centres at Pune (Head Quarter), Gurgaon, Bengaluru, Thane, Chennai (India), SEA – Shanghai (China), Bangkok (Thailand), Singapore, Tokyo (Japan), Hanoi (Vietnam), Europe – Brasov, Craiova & Iasi (Romania), Gothenburg (Sweden), Gaimersheim (Germany), Warwick (UK), North America – Detroit (USA).
Study about the company @ https://www.tatatechnologies.com
Study main board IPOs @ https://chanakyanipothi.com/category/ipo-and-grey-market-analysis/
