Tata Technologies Ltd. is launching its initial public offering on November 22, 2023. On this day, investors can bid for subscriptions, which will continue till November 24, 2023.
This IPO is entirely an offer for sale ( OFS), which means existing investors will dilute their stake in shareholding percentage. In addition, the company will not receive the proceeds from the share sale.
Investor-wise share sale:
Alpha TC Holdings Pte. Ltd. and Tata Capital Growth Fund I will be offloading 2.4% and 1.2% stake in the company each.
Tata Motors, the parent company, will release 11.41% or 4.62 crore shares of its total holding from the company. It has reduced to almost half from 8.1 crore of what it planned to dispose of earlier, per draft papers.
“We now wish to inform you that the Company has been informed by Tata Technologies Limited that it has filed today, the RHP dated Monday, November 13, 2023, with the Registrar of Companies, Maharashtra in Pune. This IPO is an Offer For Sale (“Offer”) of up to 60,850,278 equity shares for cash (“Equity Shares”), comprising of an offer for (a) up to 46,275,000 Equity Shares by the Company; (b) up to 9,716,853 Equity Shares by Alpha TC Holdings Pte. Ltd.; and (c) up to 4,858,425 Equity Shares by Tata Capital Growth Fund I, each representing up to 11.41 percent, 2.40 percent, and 1.20 percent, respectively, of the paid-up Equity Share Capital of Tata Technologies Limited,” the company shared in an exchange filing on November 13.
In October, Tata Motors diluted its 9.99 percent stake in Tata Tech for Rs 1,613.7 crore to investors in a round led by private equity group – TPG at a valuation of about Rs 16,137 crore.
Also Read: Tata Technologies Files Draft Papers With SEBI For IPO
Share allocation:
Qualified Institutional Buyers (QIBs) have a quota of 50 percent, retail investors 35 percent, and non-institutional investors will have 15 percent.
10% of the IPO has been earmarked for shareholders of Tata Motors, including individuals and Hindu Undivided Families (HUF).
The company is yet to announce its price band and IPO valuation.
Tata Group is coming with its subsidiary- Tata Tech, an arm of Tata Motors, IPO nearly after 20 years. The last IPO from the Group was Tata Consultancy Services in 2004.
Also Read: 5 Companies Launching IPO Between November 20-24, 2023