Less than two months after?Tata Group＊s first public offering in nineteen years came up in the form of?Tata Technologies＊ IPO and listing in November每December 2023, another one seems to be getting ready.
The?Tata?Group?has begun talks to list its auto component manufacturing business, Tata Autocomp Systems (TACO), with the formal process expected to begin later this year, people aware of the discussions said, as per the Moneycontrol report.
The discussions are at an early stage, and talks are currently focused on Tata Group entities that will divest their stakes in the company and also the overall quantum of stakes that will be divested in the IPO.
TACO is owned fully by?Tata Group?entities with direct holding by?Tata Sons, which owns around 21%?while the remaining is held by Tata Industries Ltd. TACO was founded in 1995 and operates as the vehicle for the group's ventures in the auto components business.
※The market conditions are far better now and as a company TACO has come a long way,§ said the first person cited above. ※It is a certainty that the IPO will be a success this time around but other details such as to which Tata group entity will divest stake and how much quantum is something that needs careful evaluation,§ said the first person, adding "It is also possible that the group may want to bring in an investor before the IPO as it did in the case of IPO bound Tata Technologies in which Tata Motors a part of its stake to global private equity fund TPG group.§?
Also Read:?Tata?Sons To Go For?IPO?By Sept 2025, All You Need To Know
Besides Tata Autocomp Systems's IPO, the Tata group has already been planning to launch the?IPO of Tata Play (formerly Tata Sky)?this year, as well as the?IPO of the group's parent company, Tata Sons, which is expected to be launched next year, i.e., in 2025. Tata Group-backed BigBasket?is also eyeing an IPO by 2025.
Also Read:?Ratan?Tata?To Sell All Of His Shares In?IPO?Bound FirstCry In 2024
Tata AutoComp Systems Limited?(Tata AutoComp) provides products and services to Indian and global automotive OEMs as well as Tier 1 suppliers. It has its own capabilities in Automotive Interior & Exterior Plastics, Composites, Sheet Metal Stampings as well as Engineering and Supply Chain.
As per the company's?website, Tata AutoComp has nine joint ventures in partnership with leading companies from the global auto component industry, through which it manufactures and markets automotive components and systems like engine cooling solutions, automotive batteries, rear view mirrors, command systems, HVAC, exhaust and emission control systems, seating systems, battery packs, battery cooling systems, battery management systems, motors, controllers, integrated drivetrains (Integrated Motor, Inverter, and Reducer), EV chargers, and electronic solutions for passenger and commercial vehicles, as well as suspensions for heavy commercial vehicles.?
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