Jobaaj Stories
Pune-based Tata Technologies, a subsidiary of Tata Motors, has filed its Draft Red Herring Prospectus (DRHP) with the Securities Exchange Board of India (SEBI) to float its public issue and raise funds from the public.
Tata Technologies Limited (TTL) is an engineering services company which offers product development and digital solutions to global OEMs. The company has 18 delivery centres across three continents and has clients across 27 countries.
According to its DRHP, the company had a revenue of Rs 3,011.79 crores for nine months ended in December 2022, with a profit of Rs 407.4 crores during the same period.
The proposed IPO plan states that the company's promoters intend to offload over 95 million shares in a 100% OFS IPO. Tata Motors, which owns around 75% of TTL, is expected to trim its 20% stake, followed by Alpha TC Holdings and TCG, selling their 2.4% and 1.2% stakes, respectively.
It is the first IPO for the Tata Group ever since TCS went public in 2004!
It is positive news for Tata Motors as the sale of the stake in TTL could bring in more funds for the company, which has been suffering losses from JLR and improve the company's finances.
Investors of Tata Motors cheered the news as its stock jumped over 1% on Friday before closing at Rs 435.85 per share.
- Aman Agarwal
