Mumbai: Tata Technologies on Thursday fixed the price band at Rs 475-500 per equity share for its Rs 3,042 crore initial public offering (IPO).
The maiden public issue will open for public subscription on November 22 and end on November 24. The anchor book of the offer will be opened for a day on November 21, the company announced.
This will be the first company from the Tata Group to float an initial share sale in nearly two decades.
Tata Consultancy Services was the last IPO from the group in 2004.
The IPO of Tata Technologies is entirely an Offer For Sale (OFS) of 6.08 crore equity shares by promoter, Tata Motors, and investor shareholders Alpha TC Holdings Pte. Ltd and Tata Capital Growth Fund I.
Since the IPO is entirely an OFS, the company will not receive any proceeds from the offer.
Under the OFS, Tata Motors will offload 4.63 crore shares, representing an 11.4 per cent stake, private equity firm Alpha TC Holdings will sell 97.17 lakh shares or 2.4 per cent stake, and Tata Capital Growth Fund I will do away with 48.58 lakh shares or 1.2 per cent of shareholding..
The issue will fetch Rs 2,890.4 crore and Rs 3,042.5 crore at the lower and upper end of the price band respectively.
The company has reserved 20.28 lakh shares in the IPO for its employees and and 60.85 lakh shares for the shareholders of Tata Motors.
Investors can bid for a minimum of 30 equity shares and in multiples thereof..
The post-issue market cap of Tata Group’s arm has been pegged between Rs 19,269 crore and Rs 20,283 crore, according to Axis Capital.
Speaking on the company’s future growth strategies, its MD and CEO Warren Harris said Tata Technologies will drive future growth by deepening engagements with the existing client base, targeting top R&D spenders in select high-priority verticals and key geographies, expanding capabilities in digital engineering and strengthening service delivery through capacity and capability building.
Last month, Tata Motors inked a pact to sell a 9.9 per cent stake in Tata Technologies to TPG Rise Climate for Rs 1,613.7 crore.
Tata Technologies is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers and their Tier 1 suppliers globally.
With over two decades of experience, the company has deep domain expertise in the automotive industry and leverage such expertise to serve clients in adjacent industries, such as the aerospace and transportation and construction heavy machinery industries.
JM Financial, Citigroup Global Markets India, and BofA Securities India are the book-running lead managers to advise the company on the IPO. The merchant bankers are aiming to list equity shares of Tata Technologies by November 30 or December 1 on stock exchanges — BSE and NSE.