Winning Bizness Sports Desk
Mumbai. After a gap of almost two decades, Tata Group is coming up with its initial public offering (IPO) in the primary market. The company is planning to launch its public issue in the form of Offer for Sale (OFS) on November 22. This will be the first IPO of Tata Group after the successful launch of Tata Consultancy Services (TCS) in 2004. Tata Technologies has set the price band of its initial public offering at Rs 475-500 per share. At the upper price, the IPO size of Tata Motors arm will be Rs 3,042.5 crore, while the company will be valued at Rs 20,283 crore. Investors will have to apply for a minimum of 30 shares.
Price band lower than unlisted market
The price band is about 47 per cent lower than Tata Technologies' share price in the unlisted market, where the stock is currently trading at Rs 950 per share. The company provides engineering and product development digital services. The company said its IPO will involve an offer for sale of 60.9 million shares, representing 15% of its paid-up capital. This is lower than the 23.6% indicated in its draft prospectus. Tata Motors will sell 11.4% stake, while private equity firm Alpha TC Holdings will sell 2.4% stake, and Tata Capital Growth Fund-I will dispose of 1.2% shareholding. The IPO will close on 24 November.
Reduced the size of its IPO
Notably, the Tata Technologies has reduced the size of its IPO by more than one-third. When the company filed its draft RHP with market regulator Sebi in March, it intended to sell 95.71 million shares or 23.6 per cent of the equity. At that time, Tata Motors planned to sell 81.33 million shares in the IPO. The net worth of Tata Technologies has increased from Rs 2,142.5 crore at the end of March 2021 to Rs 2,853.13 crore at the end of September 2023. Its profit after tax increased to Rs 624 crore in March 2023. It was Rs 239 crore at the end of March 2021. However, profits fell to Rs 352 crore at the end of September 2023. Tata Group is coming up with an IPO after almost 19 years. Earlier in the year 2004, the IPO of Tata Consultancy Services (TCS) had come.
