Tata Technologies IPO Details Date, Allotment Status, Issue Price, GMP

Tata Technologies Limited - Company Profile

Tata Technologies is the unlisted subsidiary of India’s largest commercial vehicle maker Tata Motors. Tata Technology is a global engineering and product development services company providing product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs).

The company is focused on services like Product Lifecycle Management (PLM) and Connected Enterprise IT (CEIT) to manufacturers and their suppliers in the international automotive, aerospace and engineering markets. Its services include IT consultancy, Computer Aided Design/Computer Aided Manufacturing (CAD/CAM) engineering & design consultancy, SAP implementation & maintenance and providing networking solutions.

Tata Motors, Jaguar Land Rover Airbus SE and Honda Motor Co. Ltd. are its leading clients. Operating with a total of 11,081 employees (10,161 full-time and 920 contracted), Tata Technologies has 18 delivery centers across the North America, Europe, and Asia Pacific regions headquartered in China; Tokyo in Japan, Bangkok in Thailand, Hanoi in Vietnam and Singapore.

In Europe, the centers of Tata Technology are located in Brasov, Craiova, and Iasi in Romania, Gothenburg in Sweden, Gaimersheim in Germany, and Warwick in the UK. In North America, the center is located in Detroit, USA.

Tata Technologies IPO Issue Price & Size

The issue price of Tata Technologies will be in the range of the lower and higher band. The size of Tata Technologies will be around Rs. 2,890 - Rs. 3,042 Crore. Considering the upper band of Tata Technologies IPO, the company is going to raise around Rs. 3,042 Crore.

Tata Technologies IPO Launch Date

The launch date of the Tata Technology IPO is set for November 22, 2023. the IPO will close on November 24, 2023. Though, the RHP has been filed by the SEBI.

Tata Technologies Ltd. IPO Objective

Though, the company is not going to receive any proceeds from this IPO, as offer-for-sale (OFS) is from shareholders who are selling their stakes. Tata Motors will offload 4.62 crore shares as compared to 8.11 crore earlier, while Alpha TC Holdings Pte likely to sell around 97.16 lakh shares (2.4%), and Tata Capital Growth Fund is likely to release up to 48.58 lakh equity shares (1.20%).

Why Invest in Tata Technologies IPO?

As the company is associated with one of the leading and well-known business groups and is backed by one of the leading automobile companies in the country. This IPO is going to bring a significant amount of cash flow for Tata Motors. Though, investing in the IPO there are multiple other factors, affecting the growth of the company, let's find out.

Tata Technologies IPO Strengths

• Tata Technologies is the 15th largest IT Company in the Fortune India Infotech industry ranking.

• Due to the parent company's support, Tata Technologies is expertized and has deep domain knowledge in the automobile industry.

• The company is operating with a global player with prestigious clients from Europe, North America, and Asia Pacific.

• In the last few years, companies have shown significant growth in revenue income with improved EBITDA margin and stellar bottom-line growth with better margin growth. This will also help the company to earn better EPS leading to better stock valuation in the near future.

• Offering solutions for EV development, manufacturing and Asia Pacific regions.

• Over the last few years companies have performed well and the growth is visible in financial performance with significant growth in its topline and bottom line.

• Tata Technologies' electric vehicle solutions are the key service. And now with improved product development time by 30% and upcoming demand for Electric vehicles and aerospace, this segment is going to be a game changer for the company with significant revenue growth expected from these services.

Tata Technologies IPO Risks  

• Tata Technologies Limited is getting its major revenue from the automotive segment and any kind of economic slowdown or industry-related factors can affect the business of the company.

• The company has recently expanded its offerings in new domains like education and if it is unable to sustain the growth of the business and revenue of the company.

• There is huge competition in the market for engineering services that can affect the pricing and bottom-line margins of the company.

• Further increase in wages and cost of other expenses for employees will stop the company to improve its margins and give better financial growth to investors.

• Uncertainty in the EV sector or automobile industry can affect the future growth of the company. This will also impact the business operations of the company.