The engineering and design major Tata Technologies is all set to launch its initial public offering in the capital market. The Tata company is likely to raise a sum in the range of Rs 16,200 crore to Rs 20,000 crore for the said IPO.
According to latest reports, the technology arm of the conglomerate giant Tata Group, has began the process of listing the company through an IPO, and is working towards raising money for valuation purposes.
Rs 4000 Crore Tata Tech IPO
Not just that, in order to raise money for Tata Technologies’ IPO, the Tata Group’s auto major Tata Motors has come forth and is working with advisors to aid in raising Rs 3,500 crore to Rs 4,000 crore.
The company is aiming to set its IPO for around Rs 16,200 crore to Rs 20,000 crore, an ET source stated.
The domestic auto giant informed the domestic bourses in December last year that it has proposed to explore the possible partial divestment of shares in the wholly-owned subsidiary Tata Technologies through the initial public offer route ‘sometime in the future’.
This would be a good development for the auto company’s shareholders, as it will not only unlock value but also reduce the company’s debt burden.
Tata Motors also said to the stock exchanges that the IPO of Tata Technologies would ‘come at an opportune time, subject to market conditions, applicable approvals, regulatory clearances’.
However, the complete details of the company’s IPO would only come after the Tata Group company releases something via an official statement.
Tata Technologies provides services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to automotive and aerospace original equipment manufacturers and their suppliers.
It is a subsidiary company of Tata Motors. At present, there are over 9,300 employees in Tata Technologies, working across Asia Pacific, North America and Europe.