Tata group gets ready to launch Tata Tech IPO, plans to raise Rs 5,000 cr

Tata Technologies Ltd (TTL), a subsidiary of Tata Motors incorporated in 1996 by Sir Ratan Tata, is planning to launch an IPO by September end or early October to raise 5000 Cr.

Justification

• TTL has a global presence in 25+ countries.

• As per the reports, the group will sell 95.7 mn shares or 23.6% of its existing capital in total through an Initial Public Offering (IPO)  comprising

  • 81.1 million shares held by Tata Motors 

  • Remaining held by Alpha TC Holding, a Singapore-based firm

• The revenue growth for the company as analyzed by analysts is forecasted to rise because of rise in non-captive customers & rise in demand for Electric Vehicles.

• The last IPO of Tata Group was in 2004 for Tata Consultancy Services, with a market valuation of Rs. 12.39 trillion as of 24 August 2023.

• The group has delayed the IPO for Tata Play, a satellite TV broadcaster to raise 4000 Cr, which slipped into a loss this financial year.

• Tata Sons, holding a 62% stake in Tata Play, is in talks with Temasek to buy out the Singapore Fund’s 20% stake in Tata Play.