The Initial Public Offering (IPO) of Tata Technologies is set at a price band of ₹475-500 a share. The IPO opens on November 22 and close on November 24. The issue size is ₹3,042.5 crore at the upper end of the price band.

The IPO from the Tata group stable, coming after a gap of nearly two decade, will be entirely through an offer for sale. The offer consists of the sale of up to 4.6275 crore shares by Tata Motors Ltd, 97.17 lakh shares by Alpha TC Holdings Pte. Ltd. and 48.58 lakh shares by Tata Capital Growth Fund I.

The IPO will also have a reservation of 60.85 lakh shares to existing Tata Motors shareholders while employee reservation portion will be up to 20.28 lakh shares. “India will be the innovation and global hub for the manufacturing segment. We provide engineering and digital solutions to global manufacturing clients as the company covers the entire automotive chain along with aerospace and heavy machinery,” said CEO, Warren Harris.

Acquired by the Tata Group in 1996, the company which was incorporated as Core Software Systems Pvt Ltd in 1994 specialises in product development for Original Equipment Manufacturers (OEM) and new energy vehicle companies. 

Tata Technologies has 12,451 employees with a revenue of ₹2,523 crore in 6MFY24.

‘Exciting vertical’

Abut 88 per cent of the company’s revenue comes from the automotive segment which has seen a 41 per cent compounded annual growth between 2021 and 2023. Further, the company plans to leverage its automotive expertise to expand its presence in the Aerospace and Transport and Construction Heavy Machinery (TCHM) segments. “Aerospace is an exciting vertical as the number of aircraft is expected to double in size from the present 22,000. Much of that demand will come from India,” added Harris. 

After the announcement of the IPO, Tata Motors shares hit a high of ₹680.30.  TCS, which had hit the capital market in 2004 at a price of ₹850 worth ₹4,713 crore, closed at ₹3,498 on the BSE.