Tata Technologies Gets SEBI Nod For Initial Public Offering (IPO)

The capital markets regulator SEBI grants approval to Tata Technologies Ltd., a subsidiary of Tata Motors Ltd., to raise money through an initial public offering (IPO).

According to the Draft Red Herring Prospectus (DRHP) submitted in March, the IPO is only an offer for sale (OFS), in which the company would sell up to 9.57 crore equity shares, or around 23.60 per cent of its paid-up share capital. Tata Motors, the parent company of Tata Technologies, would sell 8.11 crore shares under the OFS, representing 20% stake in the company.
Alpha TC Holdings Pte and Tata Capital Growth Fund I are two shareholders who will take part in OFS for up to 97.16 lakh shares (2.40%) and 48.58 lakh equity shares (1.20%), respectively.

The company is a top provider of engineering services to worldwide original equipment manufacturers (OEMs), delivering product development and digital solutions, including turnkey solutions. The company recorded revenue from operations of Rs 3,011.79 crore for the nine months that ended in December 2022 as opposed to Rs 2,607.30 crore for the nine months that ended in December 2021. Comparing 9MFY22 to 9MFY23, the net profit was Rs 407.47 crore vs Rs 331.36 crore. Adjusted EBITDA margins for the firm reached 19.20% in 9MFY23.

JM Financial Ltd, Citigroup Global Markets India and BofA Securities India are the book running lead managers to the issue of Tata Technologies.

Meanwhile, Gandhar Oil Refinery India Limited has also received SEBI nod from capital markets regulator SEBI on Tuesday to raise funds through an initial public offering (IPO). According to the draft red herring prospectus (DRHP), the IPO consists of a new issue of equity shares valued at Rs 357 crore and an offer for sale (OFS) of 1.2 crore by the promoters and existing shareholders. Promoters Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh, along with other shareholders Fleet Line Shipping Services LLC, IDFC First Bank Limited, Denver Bldg Mat & Décor TR LLC, and Green Desert Real Estate Brokers, are among those participating in the OFS. Edelweiss Financial Services and ICICI Securities have been appointed merchant bankers to manage the IPO of Gandhar Oil Refinery India.