Tata Applied sciences, an arm of Tata Motors, has set the value band for its Rs 3,000-crore preliminary public providing (IPO) at Rs 475-500 per share.
The anchor ebook will open on November 21, the difficulty will open for public subscription on November 22, and the difficulty will shut on November 24.
This IPO, the Tata group’s first in almost twenty years, is an pure supply on the market (OFS) of 60.85 million shares.
Tata Consultancy Companies was the group’s final IPO in 2004.
Tata Applied sciences has reserved a ten per cent stake for eligible shareholders in Tata Motors.
JM Monetary Ltd, Citigroup World Markets India Restricted. Ltd., and BofA Securities India Ltd. They’re the principle managers of the issuance books.
Warren Harris, MD and CEO of Tata Applied sciences, stated the corporate has a very good money place and is debt-free.
“By way of income, we generated $547 million final yr. Within the first six months of this yr, we generated $306 million in income. Final yr, our working margins have been 18.6 p.c. We’re debt-free and have very excessive earnings.” “A wholesome money place,” Harris stated.
Tata Tech offers product growth and digital options to OEMs. It’s within the automotive enterprise and serves prospects within the aviation, transportation and heavy building equipment (TCHM) sectors.
The corporate is seeking to broaden its presence exterior the automotive discipline.
“At present, the automotive trade represents roughly 90 p.c of our service combine. We’ve got invested in aerospace and TCHM for greater than a decade. Eighteen months in the past, we have been licensed by Airbus. We’ve got deployed the IT infrastructure anticipated from Airbus. “A regulated firm like Airbus,” Harris added.
Tata Tech has reduce the scale of its preliminary public providing by greater than a 3rd. When the corporate filed a draft Purple Herring Prospectus (RHP) with market regulator Securities and Change Board of India (SEBI) in March, it meant to promote 95.71 million shares or 23.6 per cent of the shares.
Nonetheless, in October, Tata Motors offered a 9.99 per cent stake in Tata Tech for Rs 1,613.7 crore to buyers led by personal fairness main TPG. This valued the corporate at round Rs 16,137 crore.
(Tags for translation) Tata Applied sciences