Tata Technologies IPO: Financials, shareholding, comparison with peers in 5 charts

Tata Technologies, a Tata Group company, plans its first IPO in nearly two decades, with Tata Motors, Alpha TC Holdings, and Tata Capital Growth Fund I selling up to 9.57 crore equity shares, representing 23.6% of the company's paid-up share capital.

Expert Analysis

1. Financial Highlights

• Revenue & profit growth slowed down in FY 23, as against PY.

• Revenue grew to Rs 4,418 crore (25%) growth.

• PAT grew to Rs 708 crore (63%) growth.

• The company remained debt-free, with a CAGR of 30%, PAT CAGR of  61.5%,& EBITDA CAGR of 46%, during 2021-23.

2. Key Milestones 

• Founded in 1989, from 2005 to 2017, it acquired various companies & secured funding.

3. Peer Comparison

• Tata Technologies’ revenue CAGR over the last three years has exceeded that of Tata Elxsi, L&T Technologies, and KPIT Technologies. 

• Its EBITDA margin, at 23.7%, remains more or less equal to industry standards.

4. Promoter Shareholding in Tata Technologies

• The promoter and promoter group held 76.7 % pre-issue, while the public owned 23.3%.

• After the IPO, the promoter stake will decrease to 56.7 % & the public will increase to 43.3%.

5. Returns

• Its ROE increased from 19.8% to 23.7% in FY 23.

• RoCE was 19.5% in March 2023 compared to 16.7 % in March 2022.