Tata Technologies Files Draft IPO Papers With Sebi

To launch its Initial Public Offering (IPO), Tata Technologies Limited, a division of Tata Motors Ltd., on Thursday submitted its draft red herring prospectus (DRHP) to the capital markets regulator Securities and Exchange Board of India (SEBI).

With an offer for sale (OFS), Tata Motors hopes to sell up to 9,57,08,984 equity shares, or 23.6% of the paid-up capital of its technology arm.

Up to 8.11,33,706 equity shares, or 20% of the capital, may be sold by Tata Motors Limited as part of the proposed offer. Alpha TC Holdings and Tata Capital Growth Fund-I are two additional selling shareholders who will each offer up to 97,16,853 and 48,58,425 equity shares, or 2.40 and 1.20 percent, respectively.

Warren Harris, an experienced business leader, is the CEO of Pune-based Tata Technologies, which employs over 11,081 people across 18 delivery centres in the US, Europe, India, China, Japan, and Singapore.

In accordance with Tata Motors' annual report for the year 2022, Tata Technologies Ltd is owned by Tata Motors to the tune of 74.42%. The IPO committee of Tata Motors had given its preliminary clearance for Tata Technology to make its initial public offering on December 12, 2022.

The business had stated in its then-filing that its in-principle permission was to examine the prospect of the company's interest in Tata Technologies, a subsidiary of the corporation, being partially divested through an IPO route at an appropriate time.