Tata Tech IPO: The company reserves a portion of the IPO for employees and Tata Motors shareholders
Justification
Tata Tech will offer 9.57 crore shares in the IPO, with a face value of Rs 2 per share.
It has reserved up to 0.5% of post-offer equity for its employees & up to 10% for Tata Motors Ltd shareholders, with shares distributed proportionally in the IPO.
As part of the IPO, Tata Motors Ltd (TML) will sell up to 8.11 crore shares via OFS, Alpha TC will sell up to 9.71 crore shares, and Tata Capital Growth Fund I will offer up to 48.58 lakh shares, total amounting to 23.6% of the company's paid-up share capital.
Currently, TML holds 74.69%, Alpha holds a 7.26% stake & Tata Capital Growth Fund I hold a 3.63% stake in Tata Technologies.
The lead running book managers for the IPO are JM Financials, Citi, and BoFA Securities.
The proceeds from the offer for sale do not go to the company; instead, the selling shareholders receive it. The shares are proposed to be listed on BSE NSE.
