Tata's 1st IPO In 20 Years Will Launch On Nov 22: 4.6 Crore Shares, Rs 475-500 Expected Price/Share (And More Details)


Radhika Kajarekar

Radhika Kajarekar

Nov 16, 2023


Tata Technologies Limited, a wholly-owned subsidiary of Tata Motors Limited, is gearing up to become the first Tata Group company to go public in nearly two decades, marking a significant event since the IPO of Tata Consultancy Services (TCS) in 2004. The offer-for-sale (OFS) is scheduled for November 22 and will conclude on November 24.

Tata's 1st IPO In 20 Years Will Launch On Nov 22: 4.6 Crore Shares, Rs 400-450 Expected Price/Share (And More Details)

Tata Technologies Announces IPO

The IPO involves a total of 60,850,278 equity shares, with the OFS consisting of 46,275,000 shares by the company, 9,716,853 by Alpha TC Holdings Pte Ltd, and 4,858,425 by Tata Capital Growth Fund I. These represent 11.41%, 2.40%, and 1.20% of Tata Technologies Limited’s paid-up equity share capital, respectively, as disclosed in an exchange filing on November 13.

Originally filed with the Securities and Exchange Board of India (SEBI) on March 9, the IPO size was adjusted after Tata Motors divested 9.9% of its stake in Tata Technologies in October 2023, valuing the enterprise at Rs 16,300 crore (approximately $2 billion). The stake sale, driven by Tata Motors’ deleveraging agenda, saw TPG Rise Climate SF Pte acquiring 9% and the Ratan Tata Endowment Foundation taking the remainder, reducing Tata Motors’ stake to 74.69%.

The stake sale was part of Tata Motors’ strategy to reduce net automotive debt, with the September quarter showing a decrease to Rs 38,700 crore from the previous quarter’s Rs 41,700 crore. The company aims to achieve net debt-free status for its domestic business by FY24.

IPO Pricing Range Will Be Between Of Rs. 400-450

Anticipation surrounding Tata Technologies’ IPO has led to a surge in the company’s unlisted shares, reaching around Rs 900 from a modest Rs 90-100 in 2020. Market analysts project an IPO pricing range of Rs 475-500, considering the recent stake sale.

Foreign brokerage firm CLSA has revised Tata Motors’ target price to Rs 803 from Rs 777 following the stake sale. CLSA is optimistic about Jaguar Land Rover’s improved margins in H1FY24 and foresees Tata Motors dominating the Indian SUV segment with a projected 65.4% market share for FY25 and FY26. Additionally, CLSA predicts a rise in Tata Motors’ market share in the passenger vehicle segment to 16.1% by FY26.

Tata Motors reported a consolidated net profit of Rs 3,764 crore for the September quarter, attributing the positive results to the robust performance of its British arm, Jaguar Land Rover. This marks the fourth consecutive quarter of positive financial outcomes for the Indian automaker, a notable turnaround from the Rs 945 crore net loss in the corresponding quarter the previous year.


Radhika Kajarekar
Radhika Kajarekar
  • 420 Posts

Subscribe Now!

Get latest news and views related to startups, tech and business

You Might Also Like

Business
Dec. 8, 2022

Beat The Burden Of Medical Inflation With A Health Insurance

As disease rates rise and medical technology develops, treatment costs climb. It’s essential to understand that medical costs are not exclusively associated with hospitals. The cost of prescription drugs, diagnostic procedures, ambulance and operating room fees, consultations with doctors, and other costs are also constantly increasing. All of them could put a big strain on […]

Business
Dec. 8, 2022

3 Biggest Changes Of iOS 16.2 Update That Every iPhone User Should Know!

In its latest update Apple said that it is preparing for the iOS 16.2 update for iPhones across the world. Notably, like the previous release, there are a couple of changes coming for the iPhones.  iOS 16.2 Update Release Date So far, Apple has not announced a release date for iOS 16.2 update. Reportedly, the […]

Business
Dec. 8, 2022

300 Microsoft Employees Create Employee Union, First Time Ever: This Is How Microsoft Reacted

Around 300 workers at Microsoft Corp.’s ZeniMax Studios have commenced the process of forming a union which is said to be the first at the software giant in the US.  Here, Microsoft Corp.’s ZeniMax Studios known for popular video games including Skyrim and Fallout. Forming Union In Microsoft Corp Moreover, the quality assurance employees at […]

Business
Dec. 7, 2022

India Beats China In Air Travel Safety: Ranking Jumps From 102 To 48 In Global Aviation Safety

India’s air safety protocols and executions have improved drastically over the years, as validated by the findings of a specialized agency of the United Nations, the International Civil Aviation Organization or ICAO. The UN watchdog has upgraded India’s ranking in terms of aviation safety to the 48th position, jumping past the rankings of countries like […]

Recent Posts

Related Videos

   

Subscribe Now!

Get latest news and views related to startups, tech and business

who's online