About the company
Tata Technologies, a subsidiary of the Tata Group, is a global leader in engineering services and digital transformation solutions. Established in 1989, the company operates across industries including automotive, aerospace, industrial machinery, and medical devices. Their expertise helps clients from ideation to execution, driving innovation and delivering cutting-edge products and experiences.
Key areas of focus include:
- Digital Engineering: Leveraging cutting-edge technologies like AI, AR/VR, and IoT to optimize product design, development, and manufacturing processes.
- Product Lifecycle Management (PLM): Providing comprehensive solutions for managing product lifecycle from concept to retirement, with a focus on efficiency and sustainability.
- Embedded Systems & Software: Developing high-performance embedded systems and software solutions for critical industries like automotive and aerospace.
- Manufacturing Solutions: Optimizing factory operations through advanced automation, robotics, and data-driven insights.
Global Footprint: Tata Technologies boasts a multi-national presence with over 20,000 employees across 40 global locations. This global reach allows them to serve a diverse clientele and meet individual needs effectively.
Through its comprehensive services and solutions, Tata Technologies empowers its clients to build a better future, enhancing product quality, profitability, and long-term sustainability.
Brief history of TATA Technologies
Tata Technologies, a global engineering services company, traces its roots back to 1989 when it was established as the automotive design unit of Tata Motors. Over the years, the company has evolved into a leading provider of engineering and design services to OEMs across various industries. Here’s a brief overview of Tata Technologies’ history and key milestones:
1989: Tata Technologies was founded as the automotive design unit of Tata Motors, marking the beginning of its journey in the engineering services domain.
1994: Tata Technologies was hived off as a separate company, establishing its identity as an independent engineering services provider.
2005: Tata Technologies acquired INCAT International, a UK-and US-based automotive and aerospace engineering company, expanding its global presence and expertise.
2011: Tata Technologies raised ₹141 crore (US$30 million) by selling a 13% stake to Tata Capital and Alpha TC Holdings, further strengthening its financial standing.
2013: Tata Technologies acquired Cambric Corporation, an American engineering services company, for $32.5 million, solidifying its position in the North American market.
2017: Tata Technologies crossed the ₹1,000 crore revenue mark, reflecting its growth and success in the engineering services industry.
2023: Tata Technologies announced its plans to file an initial public offering (IPO), aiming to raise ₹3,042.51 crores and expand its global reach.
Key Services offered by TATA Technologies
- Product Development: Tata Technologies provides comprehensive product development services, from concept to launch. This includes design, engineering, prototyping, testing, and manufacturing support.
- Design Engineering: Tata Technologies’ design engineers work closely with OEMs to create products that meet their specific needs and requirements. The company has expertise in a wide range of design disciplines, including mechanical, electrical, and software engineering.
- Digital Solutions: Tata Technologies offers a suite of digital solutions that help OEMs improve their efficiency and productivity. These solutions include digital twin, product lifecycle management, and manufacturing execution systems.
Industries Served by the TATA Technologies
- Automotive: Tata Technologies is a leading provider of engineering services to the automotive industry. The company has worked with some of the world’s largest automakers, including Tata Motors, Fiat Chrysler Automobiles, and General Motors.
- Aerospace: Tata Technologies has a strong presence in the aerospace industry, providing engineering services to both commercial and defense contractors. The company has worked on a wide range of aerospace programs, including the Airbus A350 and the Boeing 787.
- Industrial Machinery: Tata Technologies provides engineering services to manufacturers of industrial machinery, including construction equipment, mining equipment, and agricultural equipment. The company has a deep understanding of the unique challenges of the industrial machinery industry.
Overview of TATA Technologies IPO
Tata Technologies’ initial public offering (IPO) is set to open on November 22, 2023, and close on November 24, 2023. The company has set a price band of ₹475 to ₹500 per share, with a lot size of 30 shares. The issue size is ₹3,042.51 crores, which is entirely an offer for sale (OFS) of 6.09 crore shares.
Here is a summary of the IPO details:
- Issue Type: OFS
- Price Band: ₹475 – ₹500 per share
- Lot Size: 30 shares
- Issue Size: ₹3,042.51 crores
- Opening Date: November 22, 2023
- Closing Date: November 24, 2023
- Listing Date: Tentatively December 5, 2023
The shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The allotment for the IPO is expected to be finalized on Thursday, November 30, 2023.
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useful information
TATA Technologies IPO Lot Size
| IPO Activity | Date |
|---|---|
| Issue Price | 475-500 |
| Market 1 Lot: | 30 Shares |
| 1 Lot Amount: | 15000 |
| Min Small HNI Lots(2-10 Lakh): | 14 Lots |
| Min Big HNI Lots(10+ Lakh): | 67 Lots |
TATA Technologies IPO Dates
| IPO Activity | Date |
|---|---|
| IPO Open Date | 22-11-2023 |
| IPO Close Date | 24-11-2023 |
| Basis of Allotment Finalization Date* | 30-11-2023 |
| Refunds Initiation* | 01-12-2023 |
| Credit of Shares to Demat Account* | 04-05-2023 |
| IPO Listing Date* | 05-05-2023 |
TATA Technologies IPO Details
| IPO Issue Price: | 475-500 Per Share |
| DRHP: | Download DRHP |
| RHP: | Download RHP |
| IPO Listing At: | BSE, NSE |
| Retail Quota: | Not less than 35% of the Net Issue |
| IPO Issue Type: | Book Build Issue |
| IPO Issue Size: | ₹3042.51 Cr |
| OFS Issue: | ₹3042.51 Cr |
| Face Value: | ₹10 Per Equity Share |
| Promoter Holding Pre IPO: | 66.79% |
| Promoter Holding Post IPO: | 55.39% |
Key clientele and industry focus
Tata Technologies is a global engineering services company with a diverse clientele across various industries, primarily focusing on automotive, aerospace, and industrial machinery. The company’s key clientele includes some of the world’s leading OEMs, including:
Automotive:
- Tata Motors
- Fiat Chrysler Automobiles
- General Motors
- Jaguar Land Rover
- Ford Motor Company
- Daimler AG
- Volvo Group
Aerospace:
- Airbus
- Boeing
- Embraer
- Bombardier
- Rolls-Royce
- Safran
- Honeywell International
Industrial Machinery:
- Caterpillar
- Komatsu
- Deere & Company
- Liebherr
- Hitachi
- Atlas Copco
- Sandvik
Financial performance
Tata Technologies has demonstrated consistent financial growth over the past few years, with steady increases in revenue, profitability, and key financial ratios.
Revenue:
Tata Technologies’ revenue has grown at a CAGR of 11.4% from FY18 to FY23, reaching Rs. 3,434.4 crore in FY23. This growth is primarily driven by the company’s expansion into new markets, its adoption of innovative technologies, and its strong customer relationships.
Profitability:
Tata Technologies’ profitability has also improved significantly over the past few years. The company’s EBITDA margin has increased from 16.2% in FY18 to 21.6% in FY23, while its net profit margin has increased from 8.8% to 12.0% over the same period. This improvement in profitability is attributable to the company’s focus on operational efficiency, cost control, and value-added services.
Key Financial Ratios:
Tata Technologies’ key financial ratios also reflect the company’s strong financial health. Its return on equity (ROE) has consistently exceeded 20%, indicating that the company is generating high returns for its shareholders. Its debt-to-equity ratio is also well below industry benchmarks, demonstrating the company’s conservative financial management.
| Period | Total Income | Profit | Net Worth | Earnings Per Share (in ₹) |
|---|---|---|---|---|
| Period ending on September 30, 2023 | 25,874.24 | 3,519.01 | 28,531.27 | 8.67 |
| FY 2023 | 45,019.29 | 6,240.37 | 29,894.71 | 15.38 |
| FY 2022 | 35,783.82 | 4,369.91 | 22,801.61 | 10.77 |
| FY 2021 | 24,257.38 | 2,391.73 | 21,421.54 | 5.89 |
Tata Technologies’ financial performance over the past few years has been characterized by consistent growth, rising profitability, and strong financial ratios. The company’s strong fundamentals, coupled with its focus on innovation and expansion, position it well for continued growth in the future.
TATA Technologies IPO GMP
GMP for Tata Technologies today is Rs. 350, which suggests a listing gain of 70%.
FAQs
When does the Tata Technologies IPO open and close?
Tata Technologies IPO opens on 22 Nov 2023 and closes on 24 Nov 2023.
When will Tata Technologies IPO be listed?
Tata Technologies IPO will be listed on BSE and NSE on 05 Dec 2023.
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