Tata Tech IPO to open on Nov 22, nearly 20 years after TCS listing
Tata Consultancy Services to the very top of the valuation leader-board at the country's most-valued conglomerate, which has a market capitalisation of about ₹25 lakh crore.
Other details, including pricing of the nearly 61-million share issue at the Tata Motors-owned unit, will be announced closer to the IPO date.
Tata Motors said Monday its engineering services subsidiary has filed its Red Herring Prospectus with the Registrar of Companies in Pune.
This IPO will entirely be an Offer for Sale (OFS) by existing shareholders, with Tata Motors intending to sell up to 46.2 million shares in the IPO, representing 11.4% of Tata Technologies' equity.
Alpha TC Holdings will offload 9.7 million shares, or 2.4% of the company's equity, and Tata Capital Growth Fund 1 will sell 4.9 million shares, representing 1.2% of its equity.
Other investors in the company include Tata Motors Finance, Tata Enterprises Overseas, Zedra Corporate Services and Patrick Raymon McGoldrick.
The Tata Group's last IPO was by Tata Consultancy in 2004, when the country's biggest software exporter launched a ₹5,500-crore offer. The software services exporter has emerged as India's second most valuable company, with a market capitalisation of ₹12.19 lakh crore.
In the Tata Technologies IPO, Tata Motors has reserved up to 6.1 million shares, or 10% of the offer, for certain shareholders of the automobile company.
These eligible shareholders include individuals and Hindu Undivided Family (HUFs) structures.
Tata Technologies filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in March for the IPO. According to the DRHP, the average acquisition cost for Tata Motors is ₹7.40 per share, while for Alpha TC and
