Tata Tech with Morgan Stanley: The $2.5 billion valuation is 25% greater than TPG’s 9.9% holding in Tata Tech in a pre-IPO fundraising round last month.
- SUMMARY
- Tata Tech will be the Tata Group’s first initial public offering (IPO) in 20 years.
- According to a source, investors are debating a valuation that is 25% higher than last month.
- The firm provides engineering services to clients in the automotive and aerospace industries, among others.
According to a Thursday report, Tata Technologies is in talks with Morgan Stanley Investment Management, Blackrock, and other US hedge funds about investing in its $2.5 billion initial public offering. The company, which is a subsidiary of the Tata Group, provides engineering services to organizations in the automotive and aerospace industries, among others. Its IPO will be the first for a Tata Group company in two decades, despite the fact that the Tata Group has several listed businesses, including those in the auto and steel sectors.
Tata Technologies is in talks with US asset managers Ghisallo Capital, Oaktree Capital, and Key Square Capital, as well as BlackRock and Morgan Stanley, for probable involvement in its planned $350-375 million IPO, according to Reuters, citing sources. These funds are interested in Tata’s anchor book, in which high-profile institutional investors are assigned shares before retail and other investors can subscribe.
“Big investors are quite excited by the Tata brand, and a profitable company with scale… that’s driving demand,” a person familiar with the matter told According to the discussions, Tata Technologies is currently valued at $2.5 billion (about Rs 20,750 crore), which is around 25% more than last month, when TPG acquired a 9.9% share in a pre-IPO fundraising.
Last month, Tata Motors Ltd. (TML) entered into share purchase agreements to sell a 9.9% stake in IPO-bound Tata Technologies Ltd. (TTL) to private equity fund TPG Rise Climate SF and an endowment trust owned by Tata Trusts Chairman Ratan Tata for Rs 1,613.7 crore. TPG Rise Climate was the lead investor in this transaction, which valued TTL at Rs 16,300 crore in equity.
The IPO will open for subscriptions around Nov. 21, according to both sources, and it might be one of India’s largest IPOs this year, following condom maker Mankind Pharma. The company anticipates that the shares will begin trading in late November. According to draft IPO documents submitted with market regulator SEBI, Tata Technologies’ profit increased 23% to Rs 407.4 crore for the nine months ended December 31, 2022, while its overall income increased 15% to Rs 3,050 crore.
Half of the net offer, or 50% of the shares, will be reserved for qualified institutional bidders, with non-institutional investors (NIIs) receiving no more than 15% of the shares. Retail investors will receive approximately 35% of the proceeds from this IPO.
Frequently asked questions
What is the status of Tata Tech IPO?
The Tata Technologies IPO will begin in November 2023, following which all investors can subscribe to get shares. The shares will be issued at a face value of $2 per share in an initial public offering.
Which company did Tata buy recently?
Acquisitions. Air India, Air India Express, and a 50% share in Air India SATS for 18,000 crore (US$2.3 billion) in October 2021.
How big is Tata Technologies IPO?
5,708,984 Shares
Tata Technologies IPO Date & GMP
| Company Name | Tata Technologies Limited |
|---|---|
| Tata Technologies IPO Issue Date | October 2023 |
| Subscription Start Date | November 2023 |
| Tata Technologies IPO Issue Size | 95,708,984 Shares |
| Face value | ₹2 Per Share |
What exactly does Morgan Stanley do?
Morgan Stanley is a global leader in investment banking, and corporations, organizations, and governments rely on it. We advise clients on mergers, acquisitions, restructurings, initial public offerings (IPOs), convertibles, share repurchases, debt issues, derivatives, and other transactions.
Is JP Morgan and Morgan Stanley same?
While their names suggest that they are related, they are separate entities. Henry Morgan, J.P. Morgan’s grandson, founded Morgan Stanley in 1935. As a result, Morgan Stanley is a separate investment bank with no present ties to J.P. Morgan.
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