Tata Technologies files addendum to DRHP; Tata Motors to offload shares – details inside

Tata Technologies, a subsidiary of Tata Motors, has submitted an important addendum to the Securities and Exchange Board of India (SEBI) today. This development regarding Tata Technologies’ IPO has been eagerly awaited in the financial markets.

According to the updated document, Tata Technologies intends to offer 9.57 crore shares in its upcoming initial public offering (IPO), each with a face value of Rs 2 per share, as detailed in the addendum filed with SEBI.

As part of the Tata Technologies IPO, Tata Motors plans to divest up to 8.11 crore shares through an offer for sale, while Alpha TC intends to sell up to 97.16 lakh shares, and Tata Capital Growth Fund I will make available up to 48.58 lakh shares.

The IPO proceedings will be managed with the assistance of reputable financial institutions such as JM Financials, Citi, and BoFA Securities.

Additionally, it’s worth noting that the net proceeds from this offering will not result in any cash inflow to the company. Since it’s not a fresh issue of shares but rather an offer for sale, existing investors are selling their shares and will receive the proceeds. The shares will be listed on both of India’s primary stock exchanges, namely NSE and BSE.

Tata Motors’ decision to divest its shareholding in the IPO is expected to be advantageous for the Indian automotive giant. Since the Tata Technologies IPO is structured as an Offer for Sale, the net proceeds from this offering are expected to strengthen the balance sheet of Tata Motors Limited.

The draft red herring prospectus, initially dated March 9, 2023, which was submitted to SEBI and prepared in accordance with SEBI ICDR Regulations, lacked comprehensive details regarding the price at which the Equity Shares would be allocated and the overall size of the Offer. This addendum, filed on October 03, includes all the recent updates.

Business Overview:

Tata Technologies Limited is a prominent global engineering services company specializing in providing product development and digital solutions to international original equipment manufacturers (OEMs) and their primary suppliers. Their commitment is to add value by aiding clients in creating safer, cleaner, and higher-quality products, ultimately improving the quality of life for end-users.

Leveraging their extensive expertise in the automotive sector, they serve clients in related industries such as aerospace, transportation, and heavy construction machinery.

The company operates on a global scale, bringing together diverse teams from various parts of the world to collaborate in real-time and tackle intricate engineering challenges.

Disclaimer: This article is for educational purposes only and does not constitute financial advice. The securities mentioned are for illustrative purposes and not recommendations. It is based on information from various secondary sources on the internet and is subject to change. Please consult with a financial expert before making any investment decisions.