Tata IPO After 18 Years: This Tata Company Will Launch An IPO Due To Surge In Demand For Electric Mobility!

The engineering and design company Tata Technologies has begun preparing for the launch of its initial public offering (IPO), thanks to a spike in demand in its electric vehicles segment and a rebound in the aerospace industry.

Tata Technologies to Launch its IPO 

The domestic automaker giant Tata Motors’ profit-making arm Tata Technologies has plans to release its IPO in the Indian financial market.

According to TaMo’s annual report of 2022, the automaker holds a little over 74% stake in Tata Technologies, which focuses on four key sections, including automotive, industrial machinery, aerospace and industrials.

The Tata Group company has begun the IPO process by getting an investment bank to evaluate a float, the news agency Moneycontrol stated in a report last week.

The company has been growing quickly, thanks to a switch to autonomous, connected, electrification and shared (ACES) mobility and accelerated investment in digital as manufacturing companies adapt to meet new and evolving customer needs.

Tata Tech’s Strong Financials

In the financial year ending March 31, 2022, the Tata Motors’ subsidiary Tata Tech posted a revenue of Rs 3529.6 crore, along with an operating profit of Rs 645.6 crore and a PAT of Rs 437 crore.

The company’s chairman of the board of directors, in its latest annual report stated, “These best ever results equate to a year-on-year revenue growth of 47%, operating profit growth of 65% and profit after tax growth of 74%”.

The Pune-based Tata company has been enlisted by Airbus in its engineering, manufacturing engineering and services strategic supplier programme.

It has recently announced joining the MIH consortium initiated by Foxconn for promoting the development of sustainable mobility solutions and encourage collaboration within the industry.

Tata Sky, another Tata Group company, is also planning to launch its IPO to provide an exit to investors, including Disney. The satellite television business has yet to file its draft red herring prospectus with the capital markets regulator, the Securities and Exchange Board of India, stated an ET report.