The initial public offering (IPO) of automotive tech company Tata Technologies will open for subscription on November 22, making it the first Tata Group IPO in nearly two decades. The IPO will close on November 24.
News agency Reuters previously reported that Tata Technologies was in talks with Morgan Stanley Investment Management, Blackrock, and other U.S. hedge funds to invest in its IPO at a valuation of $2.5 billion.
Tata Technologies said its IPO would comprise an offer for sale of 60.9 million shares, representing 15% of its paid-up capital. This is less than the 23.6% stated in the draft prospectus. The company has fixed the price band for its upcoming initial public offer (IPO) at Rs 475–500 per share with a lot size of 30 equity shares and its multiples thereof.
Tata Technologies, a subsidiary of Tata Motors, is a leading global engineering services company offering product development and digital solutions to global original equipment manufacturers. TTL has deep domain expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries, such as aerospace, transportation, and construction heavy machinery.
As per the plans laid out, Tata Capital Growth Fund I and Alpha TC Holdings Pte. Ltd., both existing shareholders, will divest stakes in the company amounting to 2.4% and 1.2%, respectively. The parent company, Tata Motors, intends to divest 4.62 crore shares, which accounts for 11.41% of its overall ownership in the organisation. Tata Motors has sold approximately 50% of the 8.1 crore shares that were originally outlined in its Draft Red Herring Prospectus (DRHP).
Tata Motors had in October announced entering into share purchase agreements to sell a 9.9% stake in Tata Technologies Ltd. for an aggregate consideration of Rs 1,613.7 crore. TPG Rise Climate is the lead investor for this transaction, which ascribes an equity valuation of Rs 16,300 crore ($ 2.0 billion) for TTL. TPG Rise Climate is the dedicated climate investing arm of TPG’s $18 billion global impact investing platform. The fund focuses on five climate sub-sectors: energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions.