Tata Technologies IPO
Tata Technologies IPO Details
IPO Open
22 November 2023
IPO Close
24 November 2023
Price Band
₹ 475 – ₹500
Issue Size
₹3042.51 Cr
Issue Type
Book Built Issue IPO
Min. Lot Size
30
Face value
₹2
GMP
₹250 - ₹280
IPO Timeline
IPO Open
22 November 2023
IPO Close
24 November 2023
Allotment finalisation
29 November 2023
Refund initiation
29 November 2023
Demat transfer
29 November 2023
Listing
30 November 2023
About Tata Technologies Limited
Tata Technologies Limited is an Indian multinational product engineering company headquartered in Pune, India. Founded in 1989, the company provides services in engineering and design, product lifecycle management, manufacturing, product development, and digital transformation to a global clientele. Tata Technologies is a subsidiary of Tata Motors.
Tata Technologies was established in 1989 with a objective to provide engineering and design services to the manufacturing industry. The company’s founder, Mr. Ratan Tata, recognized the demand for expertise in product engineering and that’s how Tata Technologies came into existence.
Tata Technologies offers a complete range of engineering and digital transformation services across various industries, including automotive, aerospace, industrial, and healthcare. The company’s core services include:
Engineering and Design: Tata Technologies provides engineering design services for product development, including conceptual design, detailed design, and engineering analysis.
Product Lifecycle Management (PLM): The company offers PLM solutions to help clients manage the entire product lifecycle, from concept to retirement.
Manufacturing: Tata Technologies provides manufacturing engineering services, including process engineering, tooling design, and production planning.
Product Development: The company offers end-to-end product development services, from initial concept to volume production.
Digital Transformation: Tata Technologies helps clients transform their businesses through digital technologies, such as IoT, cloud computing, and data analytics.
Tata Technologies has a clientele of over 400 clients, including leading manufacturers from various sectors such as:
Automotive: Jaguar Land Rover, Fiat Chrysler Automobiles, Tata Motors
Aerospace: Airbus, Boeing, Bombardier
Industrial: Bosch, Caterpillar, Siemens
Healthcare: Abbott Laboratories, GE Healthcare, Philips
About Tata Technologies Limited IPO
The much-anticipated Tata Technologies IPO is set to make waves in the financial market, with a book-built issue size of Rs 3,042.51 crores. This issue is completely an offer for sale of 6.09 crore shares.
Mark your calendars as the Tata Technologies IPO subscription window opens on 22 November 2023, and closes on 24 November 2023. The IPO will be listed on both BSE and NSE, with the tentative listing date locked in for 5 December 2023.
Tata Technologies IPO price band is set between ₹475 to ₹500 per share. For retail shareholder the minimum lot size for an application is 30 shares. Retail investors can subscribe for the IPO with a minimum investment of ₹14250 -₹15,000.
The book running lead managers for this IPO include Jm Financial Limited, Citigroup Global Markets India Private Limited, and Bofa Securities India Limited. Where as , Link Intime India Private Ltd is the registrar for the IPO.
Industry Overview
The engineering services industry consists of a wide range of services that provide technical expertise and support to clients in various industries, including automotive, aerospace, industrial, and healthcare.
The global engineering services market is estimated to hit $950 billion by 2026, driven by factors such as increasing product complexity, rising demand for innovation, and the adoption of Industry 4.0 technologies. The automotive and aerospace industries are major drivers of growth in this market, with significant investments in new technologies and product development.
Peer Analysis
Tata Technologies operates in a competitive global engineering services market, with a number of other major players looking to take a bit of the market share. Some of the company’s key competitors include:
Infosys: Infosys is a global IT services company with a strong presence in the engineering services market. The company has a large team of engineers and a wide range of services, making it a formidable competitor to Tata Technologies.
Larsen & Toubro: Larsen & Toubro is an Indian conglomerate with a significant presence in the engineering services market. The company has a strong track record of delivering complex engineering projects, and it is a major competitor to Tata Technologies in the Indian market.
Wipro: Wipro is another Indian IT services company with a strong presence in the engineering services market. The company has a large global footprint and a wide range of services, making it a significant competitor to Tata Technologies.
Tata Technologies IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Tata Technologies IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 30 | ₹15,000 |
| Retail (Max) | 13 | 390 | ₹195,000 |
| S-HNI (Min) | 14 | 420 | ₹210,000 |
| S-HNI (Max) | 66 | 1,980 | ₹990,000 |
| B-HNI (Min) | 67 | 2,010 | ₹1,005,000 |
Financials of Tata Technologies
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 5,201.49 | 4,218.00 | 3,572.74 |
| Revenue | 4,501.93 | 3,578.38 | 2,425.74 |
| Profit After Tax | 624.04 | 436.99 | 239.17 |
| Net Worth | 2,989.47 | 2,280.16 | 2,142.15 |
| Reserves and Surplus | 2,605.60 | 2,028.93 | 1,897.46 |
Revenue: Tata Technologies revenue has steady upward trend, reaching ₹2,587.42 crore in the six months ended September 30, 2023, compared to ₹2,425.74 crore in the fiscal year ended March 31, 2021.
Profitability: Profit after tax (PAT) has also shown significant improvement, increasing from ₹239.17 crore in the fiscal year ended March 31, 2021, to ₹351.90 crore in the six months ended September 30, 2023.
Net Worth: Tata Technologies’ net worth has also witnessed consistent growth, reaching ₹2,853.13 crore in the six months ended September 30, 2023, compared to ₹2,142.15 crore in the fiscal year ended March 31, 2021.
Objective of the IPO
The IPO will provide exit for existing Tata Technologies shareholders who may be looking to sell their shares. This liquidity can be valuable for shareholders who need to access their capital for other purposes.
This IPO will allow investors to buy and sell the shares more easily. This liquidity can make the shares more attractive to investors and can help to boost the company’s stock price.
Promotor Share Holding Pattern
Pre IPO
Post IPO
Legal Issues or Outstanding cases on Tata Technologies
Here is a list of few of the outstanding legal cases against Tata Technologies as of October 4, 2023:
Sebi case: In 2010, the Securities and Exchange Board of India (Sebi) initiated an enforcement action against Tata Technologies for alleged violations of insider trading regulations. The case is still pending before the Securities Appellate Tribunal (SAT).
Tax case: In 2013, the Income Tax Department of India issued a notice to Tata Technologies for alleged non-payment of taxes. The case is still pending before the Commissioner of Income Tax (Appeals).
Labor case: In 2014, a group of employees of Tata Technologies filed a petition with the National Labor Commission (NLC) alleging unfair labor practices. The case is still pending before the NLC.
IPR case: In 2016, a US-based company filed a patent infringement lawsuit against Tata Technologies in a US court. The case is still pending before the US court.
Contract dispute: In 2018, a German company filed a lawsuit against Tata Technologies in a German court for breach of contract. The case is still pending before the German court.
You can read more about the outstanding litigations in the RHP of Tata Technologies
FAQ about Tata Technologies IPO
The Tata Technologies IPO subscription window is open from November 22, 2023, to November 24, 2023.
The price band for Tata Technologies IPO shares is set between ₹475 to ₹500 per share.
The minimum lot size for retail investors in the Tata Technologies IPO is 30 shares.
The Tata Technologies IPO has a book-built issue size of ₹3042.51 Cr.
Retail investors can apply for the Tata Technologies IPO by investing a minimum of ₹14250 – ₹15,000 for 30 shares.
The tentative listing date for Tata Technologies IPO is 30 November 2023.
The book running lead managers for the Tata Technologies IPO include Jm Financial Limited, Citigroup Global Markets India Private Limited, and Bofa Securities India Limited.
Tata Technologies provides a range of services including engineering and design, product lifecycle management, manufacturing, product development, and digital transformation.
Tata Technologies faces competition from companies such as Infosys, Larsen & Toubro, and Wipro in the global engineering services market.
The global engineering services market is estimated to reach $950 billion by 2026.
Tata Technologies’ clients in the automotive sector include Jaguar Land Rover, Fiat Chrysler Automobiles, and Tata Motors.
Retail investors are offered not less than 35% of the net issue in the Tata Technologies IPO.
The minimum lot size for retail investors is 30 shares, and the maximum is 390 shares. For HNI, the minimum is 420 shares, and the maximum is 1,980 shares.
As of March 2023, Tata Technologies has shown steady growth in assets, revenue, and net worth. The revenue for the six months ended September 30, 2023, is ₹2,587.42 crore.
The objective of the Tata Technologies IPO is to provide an exit for existing shareholders and to enhance liquidity for easier buying and selling of shares.
Tata Technologies IPO GMP is currently at 250 – 280
