Tata Technologies IPO: Everything you need to know

• On December 12, Tata Motors announced that the board has approved the IPO of its subsidiary Tata Technologies.
  
• Tata Technologies is a global product engineering and digital services company.
  
• After TCS listed in 2004, no other Tata company has made a debut on the domestic bourses.
  
• Since Tata Motors would sell its stake through the IPO, the proceeds will help the reeling automaker recover its losses.

Tata Group plans to make one more addition to its army of companies listed on the exchanges, which currently stands at 17. With the initial public offering (IPO) of Tata Technologies on cards, the salt-to-software conglomerate will add one more to this list.

On December 12, Tata Motors board accorded in-principle approval to explore the possibility of partial divestment in its subsidiary Tata Technologies via an IPO route, at an opportune time.

The company said that it will make further announcements of all material developments relating to IPO, as and when required, as per SEBI regulations.

Tata Technologies is a global product engineering and digital services company, run by Warren Harris who is its MD & CEO. It focuses on four key verticals -- automotive, aerospace, industrial machinery and industrials.

After tech behemoth TCS in 2004, no other Tata company has made a debut on the domestic bourses. As per Tata Motor’s 2022 annual report, it holds 74.43% stake in Tata Technologies.

In 2018, Tata Motors had called off a deal to sell 43% stake in Tata Technologies to private equity firm Warburg Pincus for $360 million, citing delays in securing regulatory approvals.

Since Tata Motors would sell its stake through the IPO, the proceeds will help the reeling automaker recover its losses. The company reported a net loss to ₹945 crore for July-September, 2022, which was its seventh consecutive quarter of net loss.

Tata Motor’s subsidiary Jaguar Land Rover has been struggling with semiconductor shortages, which has been impacting its performance for the last five-to-six quarters.

A delay in the recovery of its British subsidiary JLR due to continuing chip shortages has resulted in the company scaling back its guidance for FY23.
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