Tata Tech IPO: SEBI Approves Tata’s IPO After 20 Years, Approval for Two More Companies as Well
Tata Tech IPO
Tata Tech, a subsidiary of the Tata Group, is set to launch an Initial Public Offering (IPO) after nearly 20 years since the listing of Tata Consultancy Services (TCS) in 2004.
The Securities and Exchange Board of India (SEBI) has approved Tata Tech’s IPO, along with two other companies. This development marks an important milestone for Tata Tech as it seeks to raise capital from the public market.
In March, Tata Tech had filed its draft papers with SEBI, expressing its intention to bring an IPO. The IPO will primarily consist of an offer for sale, wherein the company’s promoters and existing shareholders will sell a total of 9.57 crore equity shares.
This means that the IPO will not result in the issuance of new shares by the company, but instead, the existing shareholders will divest a portion of their ownership.
The exact details of the IPO, such as the price band, the number of shares being sold by each shareholder, and the timeline for the offering, will be revealed in the company’s final prospectus, which will be made available to the public closer to the IPO date.
Potential investors will have the opportunity to evaluate the company’s financials, growth prospects, and other relevant information before making investment decisions.
The approval from SEBI is a significant step for Tata Tech, indicating that the regulatory authority has reviewed and cleared the company’s IPO proposal.
It demonstrates the confidence of the regulatory body in the company’s ability to meet the necessary requirements for a successful public offering.
The IPO will provide Tata Tech with access to additional funds, which can be utilized for various purposes such as business expansion, research and development, debt repayment, and other strategic initiatives.
Investors and market participants will closely monitor the progress of Tata Tech’s IPO, as it represents an opportunity to invest in a prominent technology company associated with the Tata Group, one of India’s largest and most respected conglomerates.
The IPO will provide a platform for interested investors to participate in the company’s growth potential and potentially benefit from the expected increase in shareholder value.
Tata Tech, a company belonging to the Tata Group, is gearing up for an Initial Public Offering (IPO) after a gap of nearly 20 years.
The Securities and Exchange Board of India (SEBI), the country’s market regulator, has granted approval to Tata Tech to proceed with its IPO plans.
In March, the company had submitted its draft red herring prospectus (DRHP) to SEBI, a preliminary document that provides key details about the company’s IPO offering.
According to the information disclosed in the draft filed with SEBI, Tata Tech’s IPO will not involve the issuance of new shares. Instead, it will be conducted through an Offer for Sale (OFS) mechanism.
This means that the IPO will comprise the sale of existing shares held by the company’s promoters and shareholders.
The exact number of shares and the price at which they will be offered will be specified in the final prospectus, which will be released closer to the IPO date.
The approval from SEBI marks a crucial milestone for Tata Tech as it paves the way for the company to access the public capital market.
This move allows the company’s existing shareholders to sell their stakes to interested investors, providing liquidity and potentially raising funds for the company.
The IPO will also enable Tata Tech to enhance its visibility, attract new investors, and potentially unlock greater value for its stakeholders.
It is worth noting that the last IPO from the Tata Group was in 2004 when Tata Consultancy Services (TCS), the group’s IT company, went public.
The upcoming IPO of Tata Tech signifies the group’s renewed interest in the public market after a significant gap.
As the IPO progresses, more details about Tata Tech’s financials, business prospects, and future plans will be made available to potential investors.
These disclosures will help investors make informed decisions about participating in the IPO and evaluate the company’s potential for growth and profitability.
Details About Tata Tech IPO of Tata Group
In the upcoming IPO of Tata Tech, the company’s promoters and shareholders have outlined their plans to sell a total of 9.57 crore equity shares through an offer for sale. The distribution of shares among the selling entities is as follows:
1. Tata Motors: Tata Motors, an affiliate of the Tata Group, intends to sell 8.11 crore equity shares in the IPO. Tata Motors currently holds a significant stake of 74.69 percent in Tata Tech.
2. Alpha TC Holdings: Alpha TC Holdings plans to sell 97.2 lakh equity shares in the IPO. Alpha TC Holdings holds a 7.26 percent stake in Tata Tech.
3. Tata Capital Growth Fund-I: Tata Capital Growth Fund-I aims to sell 48.6 lakh equity shares in the IPO. The fund holds a 3.63 percent stake in Tata Tech.
These three entities collectively represent the existing shareholders who will divest their shares as part of the IPO process.
The number of shares being sold indicates the proportion of ownership they will be relinquishing to potential investors.
It is important to note that the IPO will involve the sale of existing shares and will not result in the issuance of new shares by Tata Tech.
This means that the funds raised through the IPO will go to the selling entities rather than the company itself.
To facilitate the IPO process, Tata Tech has appointed JM Financial, BofA Securities, and Citigroup Global Markets India as the lead managers to the issue.
These financial institutions will play a crucial role in managing the IPO, including underwriting, pricing, and marketing the shares to potential investors.
As the IPO progresses, interested investors will have the opportunity to evaluate the company’s financials, growth prospects, and other relevant information provided in the prospectus.
This will help them make informed decisions about participating in the Tata Tech IPO and potentially acquiring shares in the company.
SEBI Approves Two More IPOs
In addition to approving the Tata Tech IPO, the Securities and Exchange Board of India (SEBI) has granted approval for two other Initial Public Offerings (IPOs): SBFC Finance and Gandhar Oil Refinery. Here are the details about each IPO:
1. SBFC Finance:
SBFC Finance applied for its IPO in March and has received SEBI’s approval. The IPO is valued at Rs 1200 crore.
It consists of two components: the issuance of new shares worth Rs 750 crore and the sale of existing shares worth Rs 450 crore through an offer for sale (OFS) window. SBFC Finance aims to raise capital for its expansion and business growth plans through the IPO.
The lead managers for this IPO are ICICI Securities, Axis Capital, and Kotak Mahindra Capital.
2. Gandhar Oil Refinery:
Gandhar Oil Refinery filed its IPO papers with SEBI in December 2022. The company specializes in manufacturing white oil, which is utilized in the pharmaceutical and cosmetic industries. White oil is a colorless, odorless, and tasteless substance.
The company plans to issue new shares worth Rs 357 crore as part of the IPO, while 1.2 crore shares will be sold through the OFS window.
The funds raised from the IPO will support Gandhar Oil Refinery’s expansion and operational activities. The merchant bankers for this IPO are Edelweiss Financial Services and ICICI Securities.
SEBI’s approval for these IPOs signifies that the regulatory authority has reviewed and cleared the respective companies’ proposals.
It showcases confidence in their ability to meet the necessary requirements for a successful public offering.
The IPO process will provide these companies with access to the public capital market, allowing them to raise funds and enhance their visibility among investors.
As the IPOs progress, further details, including the price band, timelines, and final prospectuses, will be released. Interested investors will have the opportunity to evaluate the financials, growth potential, and other relevant information provided by the companies. This information will assist them in making informed investment decisions.
