Tata Technologies IPO gets nod from Sebi

Tata Technologies Ltd, a subsidiary of automobile major Tata Motors, has received approval from capital market regulator Securities & Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

Tata Technologies Ltd, a subsidiary of automobile major Tata Motors, has received approval from capital market regulator Securities & Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

Tata Technologies IPO is purely an offer for sale (OFS), where the company will sell up to 9.57 crore equity shares representing approximately 23.60% of its paid-up share capital, according to the Draft Red Herring Prospectus (DRHP) filed in March.

Under the OFS, Tata Motors, the parent company of Tata Technologies, will offload 8.11 crore shares or a 20% stake in the company.

Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40%) and Tata Capital Growth Fund I would offload up to 48.58 lakh equity shares (1.20%).

Tata Motors currently holds a 74.69% stake in the product engineering company.

Meanwhile, Alpha TC Holdings Pte holds 7.26% stake and Tata Capital Growth Fund has 3.63% shareholding in Tata Technologies.