Tata Technologies IPO

Tata Technologies IPO

Tata Technologies Limited is coming up with an IPO consisting of an offer for sale. The promoter and early shareholders of the company intend to sell 9,57,08,984 shares. 

Tata Technologies IPO  – Important Details

Tata Technologies IPO Date NA
Tata Technologies IPO Listing Date NA
Tata Technologies IPO Price NA
Tata Technologies IPO Lot Size NA
Tata Technologies IPO Total Issue Size OFS for 9,57,08,984 shares
Tata Technologies IPO Basis of Allotment NA
Tata Technologies IPO Initiation of Refunds NA
Tata Technologies IPO Credit of Shares to Demat NA
Tata Technologies IPO Issue Type Book Built Issue IPO
Tata Technologies IPO Listing At BSE, NSE

 

Tata Technologies IPO  – Company Profile

The company is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (“OEMs”) and their tier 1 suppliers. 

The company has deep domain expertise in the automotive industry and leverages this expertise to serve their clients in adjacent industries, such as in aerospace and transportation and construction heavy machinery (“TCHM”).

The company has won various awards and titles. The company was ranked as the leading service provider in automotive,electrification and aerospace verticals. The company also won gold award for best ‘B2B Marketing Campaign’. 

Tata Technologies IPO Objective

As the company is coming up with an offer for sale where the existing shareholders are selling their shares. In the offer for sale the company will not receive any proceeds from the offer.

But the company believes in achieving the benefits of listing equity shares in the stock exchange. The company expects that the proposed listing of its Equity Shares will enhance our visibility and brand image as well as provide a public market for the equity Shares in India.

Tata Technologies IPO  Risks And Challenges

Investing in IPOs comes with its own set of risks and challenges. For Tata Technologies, these are some of the major risks and challenges:

  • Realisation Risk: The company expects a significant amount of future revenue to come from new energy vehicle companies, many of whom may be startup companies. Uncertainties about their funding plans, future product roadmaps, ability to manage growth, creditworthiness and ownership changes may adversely affect our business, financial condition and results of operations.
  • Dependency Risk: The company continues to derive a material portion of revenue from top 5 clients. If any or all of the top 5 Clients were to suffer a deterioration of their business, cease doing business with us or substantially reduce their dealings with us, our revenues could decline, which may have a material adverse effect on our business, results of operations, cash flows and financial condition.
  • Growth Risk: The company has recently expanded their services to education business and if they are unable to achieve the anticipated returns in such new growth areas, it could have a material adverse effect on our business, results of operations and financial condition.

Tata Technologies IPO Peer Comparison

Company Total Income (₹ in million) Face Value per Equity Share (₹) P/E EPS (Basic) (₹) EPS (Diluted) (₹) RoNW (%) NAV per Equity Share (Basic) (₹)
Tata Technogies Limited 35,295.80 2 NA 10.77 10.77 19.16% 545.40
KPIT

Technologies

Limited

24,323.86 10 83.10 10.17 10.05 20.70% 49.16
L&T

Technology

Services

Limited

65,697.00 2 40.92 90.92 90.74 22.92% 396.73
Tata Elxsi

Limited

24,707.99 10 70.67 88.26 88.26 34.34% 257.06

 

Tata Technologies IPO  Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 31 December 2022
Revenue (₹ in Million) 23,809.11 35,295.80 30,117.94
Equity (₹ in Million) 21,421.54 22,801.61 27,528.25
Expenses (₹ in Million) 21,050.58 29,915.26 25,164.91
Profit and Loss After Tax (₹ in Million) 2,893.11 4,340.36 4,719.92
RoNW (%) 11.17% 19.16% 14.80%
Diluted EPS only (₹) 5.89 10.77 10.04
NAV per Equity Share (₹) 512.40 545.40 677.08
Total Assets (in million) 35,727.35 42,179.99 46,406.83
Total Liabilities (in million) 14,305.81 19,378.38 18,878.58

 

Tata Technologies IPO  – Industry & Market Potential

Engineering Research & Development (“ER&D”) services is defined as the set of services offered to enterprises on activities which involve the process of designing and developing a device, equipment, assembly, platform, or application such that it may be produced as a product for sale through software development or a manufacturing process. The ER&D services are broadly broken down into software, embedded, and mechanical engineering services.

Indian ESPs are defined as Indian heritage players and do not include global players with Indian centers. They account for almost a fourth of the overall outsourced ER&D spend, while 75% of the top 50 R&D spenders have a GCC presence in India. 

With more than approximately 1.3 million available ER&D talent, India’s software engineering maturity and abundant Digital Engineering talent are drawing enterprises to outsource end-to-end product/platform development to the region.

The Indian ESP market is expected to grow at a CAGR of 13-16% (second only to Eastern Europe which has YOY rate of 16-18%) and accounted for $20 billion (₹1,655 billion), equating to nearly one fourth of the overall outsourced ER&D spend of $85-90 billion (₹7,032-7,446 billion) in 2021.

Tata Technologies IPO  – Type of Offer

Tata Technologies offer consists of an  offer for sale. The existing shareholders plan to sell 9,57,08,984 shares. The price of the offer is not yet disclosed by the company. 

Following is the details of the selling shareholder 

Selling Shareholder Type  Number of shares offered for sale
Tata Motors Limited  Promoter shareholder 8,11,33,706 equity shares
Alpha TC Holdings Pte. Ltd. Investor shareholder 97,16,853 equity shares
Tata Capital Growth Fund I Investor shareholder 48,58,425 equity shares

Tata Technologies IPO  Offer Size

Tata Technologies offer consists of an  offer for sale. The existing shareholders plan to sell 9,57,08,984 shares. The price of the offer is not yet disclosed by the company.

Tata Technologies IPO  Allotment Structure

The IPO allotment structure for Tata Technologies Ltd is planned as follows:

  • Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
  • Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
  • Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

How to apply for a Tata Technologies IPO through Alice Blue?

To apply for the Tata Technologies IPO through Alice Blue, you would typically follow these steps:

  • Click the link to log in to the IPO console.
  • Select the IPO you wish to apply for from the list of open issues.
  • Once you have selected your preferred IPO, you can view all the details such as the issue open date, closing date, issue size, price, market lots, etc.
  • Enter the UPI ID linked to your personal bank account. The application may be subject to rejection if the applicant’s identity differs from the individual linked to the bank account used for the application.
  • When placing bids, only quantities that are multiples of the lot size are allowed. If you want to apply at the cut-off price, simply click the text box next to the ‘cut-off’ price. If you wish to place a bid at a different price, enter the desired price in the ‘Price’ field.
  • After completing all the steps, read the declaration and click ‘Submit’.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Tata Technologies IPO Allotment Status on Alice Blue?

To verify the IPO allotment status for your PAN number: Once your allotment is confirmed, you will receive a confirmation email from the respective RTA. Simultaneously, you will also receive an email confirmation from Alice Blue if you applied for the IPO through the Alice Blue portal.

Visit the Link Intime page to determine the status of the allotted IPO.

If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the India Tata Technologies IPO:

  • Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the India Tata Technologies IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
  • NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Tata Technologies IPO Offer Registrar

The registrar for the Tata Technologies IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link Intime India Private Limited

C-101, 1st Floor, 247 Park

L.B.S. Marg, Vikhroli West

Mumbai – 400 083, Maharashtra

Phone: +91 810 811 4949

Email: tatatechnologies.ipo@linkintime.co.in

Website: www.linkintime.co.in

Tata Technologies IPO FAQs

1. What is the allotment date of the Tata Technologies IPO?

The allotment date is not yet announced by the company.

2. What is the price band of Tata Technologies IPO?

The price band is not yet announced by the company.

3. What is the size of the Tata Technologies IPO?

Tata Technologies Limited is coming up with an IPO consisting of an offer for sale. The promoter and early shareholders of the company intend to sell 9,57,08,984 shares. 

4. What is the listing date of the Tata Technologies IPO?

The listing date  is not yet announced by the company.

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