Mumbai, Maharashtra – Tata Technologies, a frontrunner in providing engineering and product development digital services, has successfully garnered Rs 791 crore from anchor investors, setting the stage for its historic initial public offering (IPO). This move marks a significant moment as it will be the first IPO from the esteemed Tata Group in almost two decades, following Tata Consultancy Services in 2004.
Anchor Investment Triumph:
In a circular uploaded on the BSE website, Tata Technologies announced the collection of Rs 791 crore from anchor investors, a prelude to its upcoming IPO. The company allocated 1.58 crore equity shares to 67 funds at Rs 500 apiece, which aligns with the upper end of the price band.
Notable Investors on Board:
Among the anchor investors are prominent names such as Goldman Sachs (Singapore) Pte, Copthall Mauritius Investment Ltd, and Government Pension Fund Global. The anchor book also saw participation from domestic mutual funds and insurance giants, including SBI Mutual Fund, ICICI Prudential MF, Nippon India MF, Kotak MF, Axis MF, Bandhan MF, Edelweiss MF, Sundaram MF, SBI Life Insurance Company, and HDFC Life Insurance Company.
Overview of the Maiden Public Issue:
The forthcoming public issue, with a price band ranging from Rs 475 to Rs 500 per share, is scheduled to open for public subscription on November 22 and conclude on November 24. Tata Motors’ subsidiary, Tata Technologies, will offer 6.08 crore equity shares entirely through an Offer For Sale (OFS).
Stakeholders in the OFS:
Tata Motors plans to offload 4.63 crore shares, constituting an 11.4 per cent stake. Private equity firm Alpha TC Holdings will sell 97.17 lakh shares, representing a 2.4 per cent stake, while Tata Capital Growth Fund I will part ways with 48.58 lakh shares, accounting for 1.2 per cent of the shareholding. The issue is anticipated to fetch between Rs 2,890.4 crore and Rs 3,042.5 crore at the lower and upper ends of the price band.
Upcoming IPO Milestone:
Tata Technologies has earmarked 20.28 lakh shares for its employees and 60.85 lakh shares for Tata Motors shareholders in the IPO. The IPO is particularly noteworthy following Tata Motors’ recent agreement to sell a 9.9 per cent stake in Tata Technologies to TPG Rise Climate for Rs 1,613.7 crore.
Expert Advisory Team:
Leading the IPO are book-running lead managers JM Financial, Citigroup Global Markets, and BofA Securities, offering their expertise to guide Tata Technologies through this historic financial undertaking.
Listing on the Horizon:
The equity shares of Tata Technologies are set to be listed on the BSE and the NSE on November 30, 2023, marking a new chapter in the Tata Group’s legacy.
