Tata Technologies Limited

About Tata Technologies IPO Incorporated in 1989, Tata Technologies is a leading global engineering services and digital services company that specialises in providing innovative solutions to the automotive, aerospace, and industrial sectors. Tata Technologies is a subsidiary of Tata Motors. This is an IPO from a Tata group company after a span of 19 years, following the successful Tata Consultancy Services (TCS) IPO in June 2004. The Pune based company specialises in providing outsourced engineering services and driving digital transformations for clients worldwide. They have a workforce of over 11,000 employees spread across 18 global delivery centres. The company’s core focus lies in assisting companies throughout the entire product development process, from conception and design to development and delivery, ultimately enabling the creation of superior products. Tata Motors and Jaguar Land Rover (JLR) are among the top five clients for Tata Technologies. It also counts VinFast, a southeast Asian EV OEM, among its most important clients. The company saw a CAGR rise of over 22% in its revenue from operations and over 37% in its profit between FY21 and FY23. Moreover, the global engineering, research and development (ER&D) spend is expected to reach $2.67 trillion by 2026 from $1.81 trillion as of 2022. Out of these, ER&D spend outsourced to third-party service providers is anticipated to grow at a CAGR of 11-13% between 2022 and 2026. All this could be beneficial for the company. This company is now launching the Tata Technologies Ltd IPO. The Tata Technologies IPO will be a complete offer for sale where existing shareholders and promoters will offload over 9.57 crore shares. Meanwhile, the company shares will be listed on NSE and BSE. Here are key Tata Technologies IPO details: Company Name Tata Technologies Limited Company Type Private Company Established On 1994 Tata Technologies IPO Opening Date November 22, 2023 Tata Technologies IPO Closing Date November 24, 2023 Tata Technologies IPO Allotment Status November 29, 2023 Credit of Shares to the Demat Account November 29, 2023 Tata Technologies IPO Listing Date November 30, 2023 Tata Technologies IPO Face Value ₹2 per share Tata Technologies IPO Lot Size 30 Shares Tata Technologies IPO Issue Size ₹3,042.51 Cr Tata Technologies IPO to be Listed on BSE, NSE Tata Technologies IPO Price band ₹475 to ₹500 per share Financial snapshot Particulars FY21 FY22 FY23 6MFY24 Revenue ₹ 2381crore ₹ 3529 crore ₹ 4414 crore ₹ 2526 crore Net Profit ₹ 239 crore ₹ 436 crore ₹ 624 crore ₹ 114 crore Here’s a quick look at Tata Technologies IPO’s strengths, weakness, opportunities and risks (SWOT analysis) Strengths and opportunities Has deep domain knowledge and expertise in the automotive industry. Between 9MFY21 to 9MFY22, the company's EBITDA margin increased from 6% to 19.2%. In 9MFY22, 98% of the company's revenue to the services segment came from repeat clients. Offers end-to-end solutions for original equipment manufacturers (OEM) in developing competitive EVs, including concept design, engineering, and after-sales services. Has a proprietary e-learning platform that helps them leverage their manufacturing domain knowledge, allowing them to tap into large upskilling and reskilling markets. Has a geographically diversified customer base across Asia Pacific, Europe and North America. For the first nine months of last year, 76% revenue came from foreign currencies. Risks and threats Relies heavily on automotive clients, which accounted for 88.4% of its revenue in 9MFY22, making it vulnerable to economic downturns or segment-related factors. Faces revenue risk if its top five clients experience business decline or cessation. They contributed to 72.7% of its 9MFY22 revenue. Unauthorised access, security breaches, computer hacks, viruses, and disruptions pose threat to the company’s data centres and networks. Intense competition in the engineering services industry could affect the company’s pricing and have an adverse effect on their business, financial condition and results of operations. Tata Technologies IPO details | Tata Technologies IPO date The company has filed its Draft Red Herring Prospectus with the market regulator SEBI. The Tata Technologies IPO’s opening date – in other words, the Tata Technologies IPO launch date – hasn’t been announced yet. The Tata Technologies IPO closing date also hasn’t been declared. Along with these dates, investors will be updated about the Tata Technologies shares allotment date. Investors, who receive allotment, can expect them to be credited in their demat account after the allotment date. Besides this, the Tata Technologies IPO listing date hasn’t been announced yet. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. Stay tuned with Upstox for all the key updates about the Tata Technologies IPO. | Tata Technologies IPO Price Band Tata Technologies’s IPO is a book-built issue. The Tata Technologies IPO price band hasn’t been set yet. The price band is a price range within which investors can apply for the IPO. When the Tata Technologies IPO opens, interested investors will have to choose a price within the band to apply for the public issue. Also, the Tata Technologies IPO listing price will be determined on the listing date. The listing price is the price at which the shares of a company make their debut on the stock exchanges. | Tata Technologies IPO Lot size The Tata Technologies IPO details haven’t been declared. Hence, the Tata Technologies lot size also hasn’t been announced yet. It’s important to note that an investor can apply for a minimum of 1 lot. Meanwhile, according to the news reports, the Tata Technologies IPO issue size could be around ₹4,000 crore. How to pre-apply for the Tata Technologies IPO? You can pre-apply for the Tata Technologies IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. Follow these steps to pre-apply for the IPO: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘Tata Technologies IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Pre-Apply’ Accept the mandate on your UPI app How to apply for the Tata Technologies IPO? If you are interested in this investment opportunity but unsure how to apply for the Tata Technologies IPO, here we are listing out the steps for you. When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Tata Technologies IPO on Upstox: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover tab, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, look for the ‘Tata Technologies IPO’ tab and click on it Now fill in all the required information, like ‘bid price’ and ‘lot size’ Confirm and click on ‘Apply’ Accept the mandate on your UPI app How to check the Tata Technologies IPO allotment status? When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. Here’s a step-by-step guide on how to check the Tata Technologies IPO allotment status: Login to your Upstox account, using your six-digit PIN After successfully logging in, click on ‘Discover’ On the Discover page, you will find the ‘Invest in IPO’ section Under the Invest in IPO section, you will find the ‘View all’ option Once you click on ‘View all’, you will be directed to the ‘IPO’ tab In the ‘IPO’ tab, click on ‘My applications’ In ‘My applications’, under the History section, your Tata Technologies IPO allotment status will be mentioned Open a demat account with Upstox to apply for the Tata Technologies IPO To apply for the Tata Technologies IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app. Here is a step-by-step guide on how to open a demat account with Upstox: Click here to visit the demat account opening page on the Upstox website. Enter your phone number and other essential details to begin opening a demat account. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. Complete the e-verification using the OTP sent to your registered mobile number. This is all it takes to open a demat account with Upstox. Easy and quick, right? Upstox – trading app to apply for the Tata Technologies IPO Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India. You can apply for the Tata Technologies IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero. In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.