IPO in Pipeline for Tata Motors arm Tata Tech

According to sources, Tata Motors intends to list its worldwide product engineering and digital services subsidiary Tata Technologies on the stock exchange and has chosen bankers for the initial public offering (IPO).

This might be the Tata Group's first IPO since the $5,500 billion initial public offering of India's largest software services exporter.

This may be the first public offering by the Tata Group since the IPO of Tata Consultancy Services NSE -0.68 percent, India's largest software services exporter, for $5,500 crore in 2004.

The car company reportedly hired Citigroup to look at options for the public offering. Citigroup and Tata Technologies, however, remained tight-lipped into the matter.

Tata Technologies is currently owned 72.48 percent by Tata Motors, 8.96 percent by Alpha TC Holdings, and 4.48 percent by Tata Capital Growth Fund.

Tata Motors Finance, Tata Enterprises Overseas, Zedra Corporate Services, and Patrick Raymon McGoldrick are some of its additional investors. For the fiscal year that ended on March 31, the company recorded an increase in revenues of 48% to 3,530 crore and an 83 percent increase in profits to 437 crore.

Tata Technologies has 9,300 employees worldwide that work in locations spanning the Americas, Europe, and Asia-Pacific.

Other investors include Zedra Corporate Services, Patrick Raymon McGoldrick, Tata Motors Finance, and Tata Enterprises Overseas. The company reported a 48 percent increase in revenues for the fiscal year that ended on March 31 and an 83 percent increase in profits for 437 crore.

9,300 people work for Tata Technologies globally in locations all across the Americas, Europe, and Asia-Pacific.