Tata Technologies Limited is coming up with an IPO consisting of an offer for sale. The promoter and early shareholders of the company intend to sell 9,57,08,984 shares. Tata Technologies IPO Review aims to provide investors with all the information they need.
Tata Technologies IPO Review – Important Details
| Tata Technologies IPO Date | NA |
| Tata Technologies IPO Listing Date | NA |
| Tata Technologies IPO Price | NA |
| Tata Technologies IPO Lot Size | NA |
| Tata Technologies IPO Total Issue Size | OFS for 9,57,08,984 shares |
| Tata Technologies IPO Basis of Allotment | NA |
| Tata Technologies IPO Initiation of Refunds | NA |
| Tata Technologies IPO Credit of Shares to Demat | NA |
| Tata Technologies IPO Issue Type | Book Built Issue IPO |
| Tata Technologies IPO Listing At | BSE, NSE |
Tata Technologies IPO – Company Profile
The company is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (“OEMs”) and their tier 1 suppliers.
The company has deep domain expertise in the automotive industry and leverages this expertise to serve its clients in adjacent industries, such as aerospace and transportation and construction heavy machinery (TCHM).
The company has won various awards and titles. The company was ranked as the leading service provider in automotive, electrification, and aerospace verticals. The company also won gold award for best ‘B2B Marketing Campaign’.
Tata Technologies IPO Review – Fundamental Analysis
Tata Technologies presents a mixed financial picture. While revenue and profitability have seen improvement, there are slight concerns, with RoNW showing a decline. Investors should carefully assess the financial stability and future prospects before considering this IPO.
Revenue Growth:
Tata Technologies has demonstrated consistent revenue growth, with figures rising from ₹23,809.11 million in 2021 to ₹35,295.80 million in 2022. However, there was a slight dip to ₹30,117.94 million by December 2022.
Profitability:
The company’s profitability improved notably, with a profit after tax of ₹4,719.92 million in December 2022 compared to ₹2,893.11 million in 2021.
Return on Net Worth (RoNW):
RoNW has shown fluctuations, reaching 19.16% in 2022 but dropping to 14.80% by December 2022.
Earnings Per Share (EPS):
Diluted EPS grew from ₹5.89 in 2021 to ₹10.77 in 2022, but decreased to ₹10.04 by December 2022.
Net Asset Value (NAV) per Equity Share:
NAV per equity share increased consistently from ₹512.40 in 2021 to ₹545.40 in 2022 and further to ₹677.08 by December 2022.
Asset and Liability Management:
Total assets have steadily increased to ₹46,406.83 million, while total liabilities remained relatively stable at ₹18,878.58 million by December 2022.
Tata Technologies IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 December 2022 |
| Revenue (₹ in Million) | 23,809.11 | 35,295.80 | 30,117.94 |
| Equity (₹ in Million) | 21,421.54 | 22,801.61 | 27,528.25 |
| Expenses (₹ in Million) | 21,050.58 | 29,915.26 | 25,164.91 |
| Profit and Loss After Tax (₹ in Million) | 2,893.11 | 4,340.36 | 4,719.92 |
| RoNW (%) | 11.17% | 19.16% | 14.80% |
| Diluted EPS only (₹) | 5.89 | 10.77 | 10.04 |
| NAV per Equity Share (₹) | 512.40 | 545.40 | 677.08 |
| Total Assets (in million) | 35,727.35 | 42,179.99 | 46,406.83 |
| Total Liabilities (in million) | 14,305.81 | 19,378.38 | 18,878.58 |
Tata Technologies IPO Peer Comparison
Tata Technologies Limited showcases robust financial performance with ₹35,295.80 million in total income, an EPS of ₹10.77, and a respectable RoNW of 19.16%. Among peers, KPIT Technologies has a higher P/E ratio, while L&T Technology Services shines with a strong RoNW at 22.92%. Tata Elxsi leads with a remarkable RoNW of 34.34%.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Tata Technologies | 35,295.80 | 2 | NA | 10.77 | 10.77 | 19.16% | 545.40 |
| KPIT Technologies | 24,323.86 | 10 | 83.10 | 10.17 | 10.05 | 20.70% | 49.16 |
| L&T Technology Services | 65,697.00 | 2 | 40.92 | 90.92 | 90.74 | 22.92% | 396.73 |
| Tata Elxsi | 24,707.99 | 10 | 70.67 | 88.26 | 88.26 | 34.34% | 257.06 |
Tata Technologies IPO Objective
The company is coming up with an offer for sale where the existing shareholders are selling their shares. In the offer for sale, the company will not receive any proceeds from the offer.
However, the company believes in achieving the benefits of listing equity shares on the stock exchange. The company expects that the proposed listing of its Equity Shares will enhance visibility and brand image and provide a public market for equity Shares in India.
Tata Technologies IPO Risks And Challenges
Tata Technologies IPO faces risks related to revenue realization from new energy vehicle companies, dependency on a few top clients, and potential challenges in achieving expected returns in the education business, which could impact its financial health.
- Realization Risk: The company expects a significant amount of future revenue from new energy vehicle companies, many of whom may be startup companies. Uncertainties about their funding plans, future product roadmaps, ability to manage growth, creditworthiness, and ownership changes may adversely affect the business, financial condition, and results of operations.
- Dependency Risk: The company derives some revenue from the top 5 clients. If any or all of the top 5 Clients were to suffer a deterioration of their business, cease doing business with, or substantially reduce their dealings with the company, revenues could decline, which may have a material adverse effect on the business, results of operations, cash flows, and financial condition.
- Growth Risk: The company has recently expanded its services to the education business, and if it cannot achieve the anticipated returns in such new growth areas, it could have a material adverse effect on its business, results of operations, and financial condition.
Tata Technologies IPO – Industry & Market Potential
Engineering Research and development (“ER&D”) services are defined as the set of services offered to enterprises on activities that involve the process of designing and developing a device, equipment, assembly, platform, or application such that it may be produced as a product for sale through software development or a manufacturing process. The ER&D services are broadly broken down into software, embedded, and mechanical engineering services.
Indian ESPs are defined as Indian heritage players and do not include global players with Indian centers. They account for almost a fourth of the overall outsourced ER&D spend, while 75% of the top 50 R&D spenders have a GCC presence in India.
With more than 1.3 million available ER&D talent, India’s software engineering maturity and abundant Digital Engineering talent are drawing enterprises to outsource end-to-end product/platform development to the region.
The Indian ESP market is expected to grow at a CAGR of 13-16% (second only to Eastern Europe, which has YOY rate of 16-18%) and account for $20 billion (₹1,655 billion), equating to nearly one-fourth of the overall outsourced ER&D spend of $85-90 billion (₹7,032-7,446 billion) in 2021.
Tata Technologies IPO – Type Of Offer
Tata Technologies offer consists of an offer for sale. The existing shareholders plan to sell 9,57,08,984 shares. The price of the offer is not yet disclosed by the company.
Following are the details of the selling shareholder
| Selling Shareholder | Type | Number of shares offered for sale |
| Tata Motors Limited | Promoter shareholder | 8,11,33,706 equity shares |
| Alpha TC Holdings Pte. Ltd. | Investor shareholder | 97,16,853 equity shares |
| Tata Capital Growth Fund I | Investor shareholder | 48,58,425 equity shares |
Tata Technologies IPO Offer Size
Tata Technologies offer consists of an offer for sale. The existing shareholders plan to sell 9,57,08,984 shares. The price of the offer is not yet disclosed by the company.
Tata Technologies IPO Allotment Structure
Tata Technologies IPO allocates 50% of shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 35% to Retail Individual Investors (RIIs) with investments below Rs. 2 lakhs, as per SEBI regulations.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO. There are other ways to check the allotment status of the Tata Technologies IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Tata Technologies IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Tata Technologies IPO Offer Registrar
The registrar for the Tata Technologies IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: +91 810 811 4949
Email: [email protected]
Website: www.linkintime.co.in
Tata Technologies IPO FAQs
1. What Is The Allotment Date Of The Tata Technologies IPO?
The allotment date is not yet announced by the company.
2. What Is The Price Band Of Tata Technologies IPO?
The price band is not yet announced by the company.
3. What Is The Size Of The Tata Technologies IPO?
Tata Technologies Limited is coming up with an IPO consisting of an offer for sale. The promoter and early shareholders of the company intend to sell 9,57,08,984 shares.
4. What Is The Listing Date Of The Tata Technologies IPO?
The listing date is not yet announced by the company.
