Tata Technologies IPO: 6 key things to know about the Tata Group firm

CNBC TV18 By Priyanka Deshpande Published Nov 21, 2023

[{"selector":"#anim-c13c3c91-2dfd-49c3-9036-98e7af302120 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(2.543890456618648%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The Initial Public Offering (IPO) of Tata Technologies Ltd. will hit the market this week. Here’s all you need to know about the IPO.

When will the IPO open?

[{"selector":"#anim-ebf9c686-02e7-49b8-978e-533d1268e347 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.714843579338589%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] The first IPO from the Tata group in over 20 years, will open on Wednesday, November 22 and close on Friday, November 24.

What is the price band?

[{"selector":"#anim-ef3ed71d-8e9b-4f67-aa81-048c7a9acf44 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-10.044642935507788%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Tata Technologies has fixed the price band for its IPO at ₹475-500 per share with a lot size of 30 equity shares.

What is the issue size?

[{"selector":"#anim-e30bd422-6c70-4838-a31d-12b2bf30f846 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(9.000396501055969%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] The IPO is an offer-for-sale (OFS) of 6.08 crore equity shares with a face value of ₹2 each. Tata Tech is looking to raise Rs ₹3042.5 crore from the sale.

[{"selector":"#anim-5189b1ca-ba12-43e8-983a-73f5b7403f67 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-7.020276659005361%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Under the OFS, parent Tata Motors will offload 4.62 crore shares, Alpha TC Holdings will sell 97.1 lakh shares and Tata Capital Growth Fund will also sell 48 lakh shares.

What does Tata Tech do?

[{"selector":"#anim-771f4474-9811-441c-929a-2e3b363f8420 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-4.589843579338591%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] It is a global engineering services company offering product development, digital solutions, & turnkey services to global OEMs & their tier-I suppliers. With 9,300+ employees, it serves as a key partner for JLR & Tata Motors.

What do the financials look like?

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What are the risk factors?

[{"selector":"#anim-36abae2c-604a-4102-b7f8-185067868a64 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(37.09155785082314%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] The company heavily relies on its top five anchor clients for most of its revenue. Losing any of these clients or a decline in their financial health could lead to significant revenue loss for the company. CLIENT CONCENTRATION

What are the risk factors?

[{"selector":"#anim-8c97c7b5-0f08-4dd2-ba8d-f2851fc50c0c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(1.0400409865193012%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] The company has expanded its offerings in the education business through the iGetIT platform but expects counterparty default risk with government institutions FORAY INTO EDUCATION BUSINESS

What are the risk factors?

[{"selector":"#anim-b836677b-adce-4870-b235-738e2e91bd07 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Nearly three-quarters of Tata Technologies' revenue comes from other currencies like the US Dollar, British Pound, Yuan, Euro, Singapore Dollar & the Swedish Krona. RUPEE EXPOSURE

IREDA IPO fully subscribed within hours of opening on Day 1. Check GMP and other details

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