Tata Group’s Tata Technologies initial public offering (IPO), which is said to be the most-awaited IPO of this year, is likely to be launched in mid-November, market insiders were quoted as saying by The Economic Times.
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The company had filed its draft papers with Securities and Exchange Board of India (SEBI) in March this year and got approval from the market regulator.
The shares of the company are in high demand in the grey market. The stock is already fetching a premium of Rs 280 per share in the unlisted market, according to an ET report.
Preceding the IPO, Tata Motors, the parent company, intends to divest a 9.9% stake in the firm for approximately Rs 1,614 crore. Within this transaction, TPG Rise Climate will acquire approximately a 9% stake, while the Ratan Tata Endowment Foundation will procure the remaining 0.9% from Tata Motors.
TPG Rise Climate serves as the dedicated climate investment arm of TPG's global impact investing platform, valued at $18 billion. The fund centers its focus on five climate sub-sectors, encompassing energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions.
The IPO encompasses an offer for sale of up to 95,708,984 equity shares for cash. As part of the Offer for Sale (OFS), Tata Motors is set to divest 8.11 crore shares, and additional selling shareholders include Alpha TC Holdings and Tata Capital Growth.
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In this issuance, Tata Technologies has allocated a 10% quota for Tata Motors' eligible shareholders. Notably, Tata Motors currently holds a 74.69% stake in the company.
JM Financial Limited, Citigroup Global Markets India Private Limited, and BofA Securities India Limited are the book-running lead managers.
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Tata Technologies stands as a prominent global engineering services firm, providing product development and digital solutions, encompassing turnkey offerings, to OEMs worldwide. With a dedicated workforce exceeding 11,000 professionals, its presence extends across 18 global delivery centers.