Tata Technologies' initial public offering (IPO) will open for subscription on November 22, its parent firm Tata Motors said has said. This will be the first Tata Group IPO in nearly two decades, according to news agency Reuters. Tata Technologies, which provides engineering and product development digital services, said its IPO would comprise an offer for sale of 60.9 million shares, representing 15 per cent of its paid-up capital. That is lower than the 23.6 per cent indicated in its draft prospectus.
According to Reuters, Tata Motors will offload an 11.4 per cent stake, while private equity firm Alpha TC Holdings will sell a 2.4 per cent stake, and Tata Capital Growth Fund I will dispose of a 1.2 per cent shareholding. The IPO closes on November 24.
Last week, Reuters reported that Tata Technologies is in talks with Morgan Stanley Investment Management, Blackrock and some US hedge funds to invest in its IPO at a valuation of $2.5 billion.
Last month, Tata Motors said it would sell a 9 per cent stake in Tata Technologies to a fund of US private equity firm TPG in a deal that valued the IPO-bound company at nearly $2 billion.
Meanwhile, Tata Motors logged a consolidated net profit of Rs 3,783 crore for the September quarter, riding on robust performance by its British arm Jaguar Land Rover. This is the fourth successive quarter of positive results for the auto major. The Mumbai-based company had posted a consolidated net loss of Rs 1,004 crore in the July-September period last fiscal.
Total consolidated revenue from operations stood at Rs 1,05128 crore, as compared with Rs 79,611 crore in the year-ago period, Tata Motors said in a regulatory filing. On a standalone basis, the company reported a net profit of Rs 1,270 crore for the September quarter, it added.