What happens when a stock crosses upper or lower circuits?

The offer for sale consists of 4.86 million Tata Capital Growth Fund I shares, 9.72 million Alpha TC Holdings Pte shares, and 81.12 million Tata Motors shares.

Tata Technologies Ltd IPO

Tata Technologies Ltd wants to come out with its IPO and has filed its draft red herring prospectus with SEBI. The initial public offering will comprise a pure OFS (offer for sale) of around 95.71 million shares by the existing shareholders and promoters. The offer for sale consists of 4.86 million Tata Capital Growth Fund I shares, 9.72 million Alpha TC Holdings Pte shares, and 81.12 million Tata Motors shares. 

Tata Motors has a 74.69% stake in the company, and Alpha TC owns 7.26%. Tata Capital Growth Fund I holds 3.63% of the firm. The issue's lead managers are Citigroup Global Markets India Pvt Ltd, BofA Securities, and JM Financial Ltd. 

Also ReadWhy is SEBI unhappy? Read to know more about its notice to Mutual Funds. 

About Tata Technologies

Tata Technologies specializes in digital services and product engineering. It caters to various industries, including aerospace, heavy industrial machinery, and automotive. The company has considerable experience as it was established around 33 years back. Its products and services include:
•    IT product lifecycle management services.
•    Value-added reselling.
•    Education programs.
•    Digital enterprise solutions.
•    Research and development.
•    Engineering. 

This could be the first time in more than 18 years that we see Tata group go public if Tata Technologies IPO outperforms the proposed Tata Play IPO. Warren Harris is a veteran of the company, leading the firm. The firm based in Pune has over 11,000 employees that sprawl across delivery centers (18) across Singapore, Japan, China, India, Europe, and the USA. Some of its competitors are persistent, KPIT Technologies, Infosys, Johnson Controls, and Cyient. 

Conclusion

Tata Technologies mostly depends on the Tata Group (Jaguar Land Rover and Tata Motors) for business. Interestingly, the company has increased its generated business share outside. The account distribution (non-captive) increased from 46% to 64% from FY20 to FY22. The firm had an Rs. 3011.79 crore revenue in December 2022, more than Rs 2607.30 crore last year. It showed an Rs. 407.47 crore profit compared to Rs. 331.36 crores the previous year. 

 

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