Tata Group, led by N Chandrasekaran, is poised for another initial public offering (IPO). According to recent reports, the group has started the process of taking Tata Technologies public via an IPO. For this Tata Tech IPO, the Tata Motors subsidiary is also reportedly working to raise some money for the valuation.
The Tata Motors subsidiary is working with two consultants to help raise Rs 3,500 crore to Rs 4,000 crore, according to an Economic Times report. This places the preliminary valuation for Tata Tech’s initial public offering, which the company is targeting, at around Rs 16,200 crore to 20,000 crore.
Earlier, Tata Motors’ board of directors also approved a partial sale of its stake in Tata Tech via an IPO, according to the report. It adds that at the time the company had said in an IPO filing that the IPO would occur “at a convenient time, subject to market conditions, applicable approvals and regulatory approvals.”
Like other companies in the Tata Group, Tata Tech’s IPO has been the subject of much talk. The company is an engineering design and technology services company, but caters to the automotive, aerospace and other industries. The company also believes in the convergence of digital technology and traditional technology to develop products.
However, it must be noted that the final details of Tata Tech’s IPO will only be announced after the company has released an official statement.
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