Tata Motors plans to announce IPO for its tech arm, Tata Technologies

Tata Motors plans to announce IPO for its tech arm, Tata Technologies

Indian auto major, Tata Motors intends to list its worldwide digital services and product engineering subsidiary Tata Technologies on the stock exchange and has reportedly hired Citigroup for options to launch the initial public offering (IPO).

This would be the Tata Group's latest IPO since the USD 692 million IPO of India's largest exporter of software services, Tata Consultancy Services, in 2004.

Tata Motors owns a 72.48% stake in Tata Technologies, 4.48% by Tata Capital Growth Fund, and 8.96% by Alpha TC Holdings. While, Tata Motors Finance, Zedra Corporate Services, Tata Enterprises Overseas, and Patrick Raymon McGoldrick are some of its other investors.

For the fiscal year 2021-2022, the company recorded an increase in revenues of 48% to $444 million and an 83% increase in profits to $54 million . Approximately, 9,300 people are employed for Tata Technologies worldwide across Europe, the Americas, and Asia-Pacific.

Tata Technologies concentrates on four main industry sectors: the automobile, aerospace, machinery, and industrials. The company operates in four business segments: value-added reselling and iProducts offers, education offerings, and engineering, research, & development (ER&D) services, and digital enterprise solutions (DES).

There are 18 global distribution centers for the company's products to reach each of its consumers hassle-free.

Notably, Tata Technologies’ CEO Warren Harris, sees a substantial increase in revenues in the next few years due to regulatory and health restrictions being relaxed, which allowed for improved commercial operations and new business prospects in South East Asia.

Another company in the Tata Group, Tata Sky, also intends to go public in order to give investors, like Disney, a way out. The Securities and Exchange Board of India, which regulates India's financial markets, has not yet received the satellite television industry's draught red herring prospectus.

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Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.