Tata Tech had cut its IPO size by more than a third. When the company had filed its draft RHP with market regulator Sebi in March, it had intended to sell 95.71 million shares, or 23.6 per cent equity.
Tata Tech, a global engineering services company, filed its red herring prospectus (RHP) with the Registrar of Companies in Pune on Monday.
According to the latest RHP, the IPO will consist of an offer for sale of 60.85 million shares. The selling shareholders include Tata Motors (to divest 46.3 million shares, or 11.41 per cent stake), Alpha TC Holdings (9.72 million shares, or 2.4 per cent) and Tata Capital Growth Fund (4.86 million shares, or 1.2 per cent).
Back then, Tata Motors had plans to sell 81.33 million shares in the IPO. The shares to be divested by Alpha TC and Tata Capital Growth Fund remain the same.
In October, however, Tata Motors had sold 9.99 per cent stake in Tata Tech for Rs 1,613.7 crore to investors led by private equity major TPG. This valued the company at about Rs 16,137 crore.
The company is expected to announce its price band and IPO valuation closer to the IPO date.
About a tenth of the shares to be sold in the IPO are reserved for the shareholders of parent Tata Motors. The IPO closes on November 24.
Tata Tech offers product development and digital solutions to original equipment manufacturers.
First Published: Nov 14 2023 | 12:19 PM IST
