TATA Technologies IPO

To the world’s original equipment manufacturers and their tier 1 suppliers, TATA Technologies provides product development and digital solutions, including turnkey solutions (Source: Zinnov Report). TATA Technologies IPO will hit the stock market in September 2023.

About TATA Technologies

By assisting their clients in creating goods that are safer, cleaner, and enhance the quality of life for their end-users, they aim to add value for their clients. They use their extensive knowledge of the automotive sector to help clients in related industries like aircraft, transportation, and heavy equipment for construction.

As a worldwide company, they assemble varied teams from all over the world with a variety of skill sets to work together in real time and address challenging engineering issues for their clients.

They feel that their globally distributed onshore-offshore service delivery capacity helps them to appropriately handle their clients in a world that is growing more complex, with shorter timetables for product creation and fast technological development requirements.

Market

With a diverse international clientele, they generated 25.76%, 23.94%, 22.27%, and 28.03% of their operating revenue from clients in India, Europe, North America, and the rest of the globe, respectively.

Their increasing net promoter score, which places them in the top 20 percentile of technology services players, and their 97.24% repeat rate (based on the percentage of revenue attributable to the Services segment in a period generated from existing clients) for 2022 and their 98.06% repeat rate for the nine-month period ended December 31, 2022, are additional indicators of the strength of their client relationships.

Their global delivery methodology makes use of the strengths & skills of the staff members from their numerous regional centers to provide value to the customers.

Expertise

Their strategy for assisting their clients in leveraging digital technology to improve the way they conceptualize, develop, produce, sell, & service new products is supported by their expertise in the automotive industry and in-depth understanding of client requirements.

Additionally, they have opportunities to develop their abilities & improve their value proposition for the automotive industry because to their long-standing relationships with their Anchor Clients, such as the one they have had with JLR since 2010.

With TML and JLR, specific offerings were established, such as their whole vehicle concept and light weight structures. Additionally, their collaboration with TML has allowed them to better utilize their Industry 4.0 & Power of 8 platform development capabilities through their interactions with their Anchor Clients since 2010.

TATA Technologies IPO

TATA Technologies Limited, headquartered in Pune has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 95,708,984  equity shares on 09 March 2023.

The offer doesn’t includes any fresh issue and there is offer for sale (OFS) of 95,708,984 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-22	31-Mar-22	31-Mar-21	31-Mar-20
Total Assets	4,640.68	4,218.00	3,572.74	2,572.97
Total Revenue	3,052.30	3,578.38	2,425.74	2,896.96
Profit After Tax	407.47	436.99	239.17	251.57

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	6.20	6.20	3
Financial Year 2021	5.89	5.89	2
Financial Year 2022	10.77	10.77	1
Weighted Average	8.38	8.38
30 Sep 2022	10.04	10.04

Objects of the Issue

• Repayment/prepayment of debt.
• General corporate objectives and organic growth.

Basis of the offer

TATA Technologies feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• Comprehensive understanding of the automobile sector.
• Differentiating skills in autonomous, connected, and electrified vehicles, which are the emerging trends in automotive technology.
• Robust digital capabilities supported by customized accelerators.
  Exceptional clientele that includes new energy vehicle manufacturers, established OEMs, and anchor accounts.
• Scalability and close client involvement are made possible through a global delivery approach.
• A proprietary e-learning platform that makes use of our expertise in the manufacturing industry to tap into the sizable upskilling and reskilling market.
• A well-known brand with a management team, board of directors, and promoter with experience.

TATA Technologies Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	KPIT  Technologies Limited	83.10
2	2	L&T Technology Services Limited	40.92
3	1	Tata Elxsi Limited	70.67

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2022, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on March 06, 2023 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2022.

TATA Technologies IPO Details

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Issue Type	Book Building
Face Value	2 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	95,708,984 equity shares
Fresh Issue	0
Offer for Sale	95,708,984 equity shares

TATA Technologies IPO Date

TATA Technologies Limited IPO opening date is September 2023, and the closing date is September 2023. The TATA Technologies issue may list in September 2023.

IPO Opening Date	September 2023
IPO Closing Date	September 2023
Basis of Allotment Date	September 2023
Initiation of Refunds	September 2023
Credit of Shares to Demat Account	September 2023
IPO Listing Date	September 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

TATA Technologies IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of TATA Technologies IPO.

TATA Technologies IPO GMP

TATA Technologies Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023
September 2023

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

TATA Technologies Limited IPO Review

TATA Technologies Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of TATA Technologies IPO is good or bad.

TATA Technologies IPO Risk

• Their sales are largely reliant on customers who are centered in the automotive industry. Their firm, financial position, and operational outcomes could all suffer from an economic recession or other reasons influencing this market.
• Their management team’s & their competent engineering specialists’ abilities are crucial to their success. its firm may not be able to expand, and its revenue, operational outcomes, financial capability, and profitability could decrease if they fail to attract, keep, train, and utilize these employees optimally.
• Their pricing policies and range of services might not adequately account for the expense and complexity of carrying out their work, and if they are unsuccessful in controlling expenses, some of their contracts might be or might turn out to be unprofitable.

Other Threats

1. They could be the target of intellectual property infringement complaints from clients or other parties. Additionally, they can have trouble defending their intellectual property rights.
2. They might be held accountable to their clients for losses brought on by computer malfunctions, the leakage of private data, or data security breaches, all of which could tarnish their reputation, ruin their relationships with clients, and result in client loss.
3. They just extended their educational services, and if they are unable to provide the expected returns in these new growth markets, it could negatively affect their operational results, financial situation, and future business growth.
4. Any failure to control their expansion could cause company disruption and lower their operational results, profitability and the financial capacity.

Global Delivery

As of December 31, 2022, they have a global workforce of approximately 11,081 individuals supporting numerous clients from 18 global delivery centers in Asia Pacific, Europe, and North America.

Their globally distributed execution methodology maintains a balance between nearness to onshore clients and offshore effectiveness. Utilizing their low-cost offshore delivery strategy to outsource more work to Romania and India allows them to operate more efficiently.

They are able to provide aligned onshore client proximity and help the iterative nature of product development services along with the capacity and cost-effectiveness of offshore delivery facilities with the right skill set at a global scale, an optimized engagement model, and a balance of onshore/offshore employees.

TATA Technologies IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this TATA Technologies IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

TATA Technologies Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2023	1
September 2023	2
September 2023	3

TATA Technologies Limited Management

They gain from their Promoter, TML, a member of the Tata Group, who has a proven track record, a stellar reputation, and extensive experience. With a history spanning more than a century, the Tata Group is one of the top commercial giants in India.

It consists of more than 28 equity listed firms in a variety of industries, including technology, steel, and automobile industry. The Brand Finance India 100 2022 research named The Tata Group as the most valuable Indian brand in 2022.

One of the top automakers in the world, their Promoter offers consumers in more than 125 countries complete & intelligent e-mobility solutions. Their Promoter’s manufacturing sites are dispersed throughout India, UK, & South Korea and employ about 73,000 people.

TATA Technologies Limited‘ Promoters

• Tata Motors Limited

Principal Shareholders’s Holding

Pre Issue Share Holding	74.69%
Post Issue Share Holding

TATA Technologies Limited Prospectus