TATA TECHNOLOGIES LIMITED

TATA TECHNOLOGIES LIMITED- IPO DETAILS 

Company Overview 

Tata Technologies, a subsidiary of Tata Motors, holds a prominent position as a global leader in Engineering and product development. Renowned for pioneering advancements in the Automotive and Aerospace sectors, the company offers industry-leading Engineering Research and Design services (ER&D). Established in 1989 under the visionary leadership of Mr. Ratan Naval Tata, the Chairman Emeritus of the Tata Group, Tata Tech capitalized on emerging opportunities in the evolving Product and engineering space.  

In a significant move in 2005, the company expanded its global footprint by acquiring the UK-based ER&D firm, INCAT International. Further, Tata Technologies garnered support from Apla TC Holdings and Tata Capital Growth Fund, both of which are set to offer shares in the upcoming IPO. Beyond ER&D, Tata Tech diversifies its portfolio with offerings in Digital Enterprise Solutions, Education, and Software Product Reselling. As a subsidiary of Tata Motors Ltd, the company enjoys the advantage of securing long-term contracts from the Tata Motors and Jaguar Land Rover (JLR) divisions. 

With a well-balanced geographical presence, Tata Technologies, although generating most of its revenue from India, maintains a diversified global reach. The company stands as a key player in shaping the future of engineering and product development. 

Objective of the IPO 

Here are a few quick reasons why Tata Technologies going public:  

1. Realize the advantages of listing Equity Shares on Stock Exchanges.  

2. Execute the Offer for Sale, involving up to 95,708,984 Equity Shares by the Selling Shareholders.  

Company Financials 

Key Performance Indicator 

Pros 

1. Tata Technologies possesses extensive knowledge in the Automotive sector, particularly in Internal Combustion Engines (ICE), encompassing the entire spectrum of vehicle architecture, body design, chassis engineering, and more. 

2. Given Tata Motors and JLR's dedicated Electric Vehicle divisions, Tata Technologies is actively engaged in developing the Electric Vehicle Modular Platform (eVMP). This platform is geared towards creating products centered around Plug-in Hybrids (PHeV) and Battery Electric Vehicles (BEV). 

3. Tata Tech boasts a prestigious client base that includes prominent names such as Airbus, McLaren, Honda, Ford, and Cooper Standard. 

4. In a strategic move, the company has ventured into a proprietary E-Learning platform, aiming to tap into the burgeoning upskilling market. This diversification allows Tata Technologies to extend beyond its core business. 

Cons 

1. The entirety of the IPO Proceeds will be directed to the selling shareholders, with no direct benefits accruing to the Company. 

2. The concentration of the top 5 clients, responsible for a contribution of 60.49%, poses concentration risks, and it's essential for investors to note that these clients include Tata Motors and JLR. 

3. Given Tata Technologies' involvement in Engineering and Software Product Development, there exists a potential competition scenario with TCS and Tata Elxsi. This competitive landscape raises the possibility of Tata Technologies experiencing a decline in sales. 

4. The Company relies significantly on foreign markets, obtaining 70% of its revenue from overseas sources. Notably, 21% and 23% of revenue come from North America and Europe, respectively. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”