Tata Technologies, the engineering and research and development arm of the Tata Group, has filed draft papers with the market regulator Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company plans to raise INR 11.82 billion ($158.9 million) through the offering.
As part of the IPO, Tata Motors, the holding company of Tata Technologies, plans to offload 20% stake in the company. The funds raised will be utilized to repay loans and other general corporate purposes.
Tata Technologies, which provides engineering and design services to companies in industries ranging from aerospace to automotive, has seen steady growth in its business over the years. The company reported revenues of INR 27.9 billion ($376 million) in the financial year 2021, up from INR 26.1 billion ($352 million) the previous year.
The IPO is part of Tata Group’s plan to streamline its business and reduce debt. Tata Motors had earlier announced its plan to reduce its stake in Tata Technologies and other subsidiaries to raise funds.
The company has not yet revealed the timeline for the IPO, but it is expected to take place in the coming months.
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