According to reports, Tata Motors is planning to launch an IPO of its global product engineering and digital services subsidiary, ‘Tata Technologies’ and the company has also appointed bankers for the initial public offering (IPO). This will be the first public float from the Tata Group since the IPO of TCS (Tata Consultancy Services), in 2004.
According to the reports, the automobile company has appointed Citigroup to explore options for the public issue. Tata Technologies and Citigroup has declined to comment, as the companies did not respond to comments.
As the automobile company holds a 72.48 percent stake in Tata technologies, and other investors include Tata Motors Finance, Zedra Corporate Services, Tata Enterprises Overseas, and Patrick Raymon McGoldrick. For the fiscal year ended in March 31, 2022, Tata Motors also reported a 48 percent increase in the revenues, while profits have been increased to 83 percent.
Overall, the company has 18 delivery ventures across the globe and four business segments, including research, engineering, and development services, along with digital enterprise solutions (DES), value-added reselling, education offerings, and iProducts offerings.
Tata Sky, a Tata Group company, is also planning to launch its IPO to provide an exit to the investors, including Disney. The satellite television business has yet to file draft red herring prospectus along with the capital markets regulator, SEBI.