For the first time in 19 years, Tata group is set to launch IPO of one of its companies. Finally, the date for much-awaited IPO of Tata Technologies has been set.
Tata Technologies IPO will be open for public subscription from November 22 to November 24, 2023.?This IPO is entirely an offer for sale of up to 6.08 crore equity shares for cash, which has been reduced from 9.57 crore shares earlier.
JM Financial, Citigroup Global Markets India, and BofA Securities India are the book-running lead managers to the IPO. For the unversed,?Tata Technologies is an?IT service management company?offering product development and digital solutions to global original equipment manufacturers (OEMs). It was?founded in 1989.
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Tata Group's last IPO came nearly two decades ago, in the year 2004. It was of?TCS. Following a hugely successful IPO in?July 2004, TCS was listed on the NSE and BSE on August 25, 2004.
The price band for the issue will be announced soon. Under the offer for sale, the company's?parent Tata Motors?will sell 4.62 crore shares, Alpha TC Holdings will offload 97.1 lakh shares and Tata Capital Growth Fund will give up 48 lakh shares.?In the grey market, the company's shares are commanding a premium of Rs 270-285, which is expected to inch up further after the official announcement of the issue launch.
The company filed its IPO papers with SEBI in March this year and received approval from the regulator in June. In the issue, Tata Technologies has reserved a 10% quota for Tata Motors' eligible shareholders, as per ET.
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As per the ET report, Tata Tech was last valued at around $2 billion (Rs 16,300 crore), when TPG Climate picked up about a 9% stake in the company.
For the nine-month period ended December 2022, the company clocked 15% year-on-year (YoY) growth in revenue at Rs 3,052 crore. The service segment revenue contributed 88% of the total revenue. The company's net profit during the same period stood at Rs 407 crore.?Over FY21-23, its revenue grew at a compound annual growth rate (CAGR) of 30%, leading to a 46% EBITDA CAGR. PAT for the same period increased at a CAGR of 61.5%.
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