Tata Technologies
Book Building issueMainboard₹3,043 Cr issue
+139.99%
Listing gain over issue price
Issue size
₹3,043 Cr
1 lot at cut-off
₹15,000
Lot size
30shares
Open
22 Nov 2023
Close
24 Nov 2023
Allotment
28 Nov 2023
Listing
30 Nov 2023
Listing performance
Issue price
₹500
Listed at
₹1,199.95
Listing-day close
₹1,314.25
Latest price
₹657.35
Close on 23 Oct 2026
Listing gain
+139.99%
Return since issue
+31.47%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 22 Nov 2023 – 24 Nov 2023
- Listing date
- 30 Nov 2023
- Face value
- ₹2 per share
- Issue price
- ₹500 per share
- Lot size
- 30 shares
- Issue type
- Book Building issue
- Total issue size
- ₹3,043 Cr
- Market cap at offer price
- ₹20,283 Cr
- Promoter holding
- 66.79% → 55.39% pre-issue → post-issue
- ISIN
- INE142M01025
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- JM Financial Ltd.
- Registered office
- Plot No.25, Rajiv Gandhi Infotech Park Hinjawadi, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,58,21,071 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 30 shares per lot, in multiples, at ₹500
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 30 | ₹15,000 |
| Retail (max) | 13 | 390 | ₹1,95,000 |
| S-HNI (min) | 14 | 420 | ₹2,10,000 |
| S-HNI (max) | 66 | 1,980 | ₹9,90,000 |
| B-HNI (min) | 67 | 2,010 | ₹10,05,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,58,21,071
Anchor portion
₹791 Cr
at ₹500 per share
Valuation and performance
Valuation at offer price
₹500 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 15.37 | — |
| P/E (×) | 32.53 | — |
| Market cap | — | ₹20,283 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 20.87%
- PAT margin
- 14.14%
- NAV per share
- ₹73.68
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Tata Technologies
Tata Technologies Limited is a leading global engineering services company with over two decades of experience, offering product development and digital solutions including turnkey solutions to global original equipment manufacturers and their Tier 1 suppliers. The company has deep domain expertise in the automotive industry and leverages this to serve clients in adjacent industries such as aerospace and transportation and construction heavy machinery. Through a globally distributed execution model, the company balances onshore client proximity with offshore efficiency. The company operates in the global engineering, research and development services industry, with revenue derived from providing outsourced engineering services and digital transformation services to global manufacturing clients, as well as technology solutions and education business.
Company Analysis
from RHPTata Technologies Limited is a leading global engineering services company offering product development and digital solutions to original equipment manufacturers and Tier 1 suppliers across automotive, aerospace, and transportation/construction heavy machinery industries.
Tata Technologies Limited is a leading global engineering services company with over two decades of experience, offering product development and digital solutions including turnkey solutions to global original equipment manufacturers and their Tier 1 suppliers. The company has deep domain expertise in the automotive industry and leverages this to serve clients in adjacent industries such as aerospace and transportation and construction heavy machinery. Through a globally distributed execution model, the company balances onshore client proximity with offshore efficiency. The company operates in the global engineering, research and development services industry, with revenue derived from providing outsourced engineering services and digital transformation services to global manufacturing clients, as well as technology solutions and education business.
engineering research and development servicesautomotiveaerospacetransportation and construction heavy machinery
Objects of the Issue
- The Selling Shareholders will be entitled to the entire proceeds of the Offer for Sale after deducting their portion of the Offer expenses and relevant taxes thereon. Our Company will not receive any proceeds from the Offer. The objects of the Offer are to (i) achieve the benefits of listing the Equity Shares on the Stock Exchanges; and (ii) carry out the Offer for Sale p.22
- No proceeds to the company as this is an Offer for Sale p.77
- The objects of the Offer are to (i) achieve the benefits of listing the Equity Shares on the Stock Exchanges; and (ii) carry out the Offer for Sale of Equity Shares by the Selling Shareholders. p.126
Issue Structure
- Total Issue
- ₹30,425.14 million (60,850,278 Equity Shares at ₹500 per share)
- Fresh Issue
- Not applicable
- Offer for Sale
- 60,850,278 Equity Shares aggregating to ₹30,425.14 million
- Price Band
- ₹475 to ₹500 per Equity Share
- Lot Size
- 30 Equity Shares and in multiples of 30 Equity Shares thereafter
- Face Value
- ₹2 per Equity Share
Business Model
The company earns revenue from: (1) Services segment - providing outsourced engineering and designing services and digital transformation services to global manufacturing clients; (2) Technology Solutions segment - comprising products business (value added reselling of software applications and solutions) and education business (upskilling and reskilling solutions for academia and enterprises); and (3) other operating revenues.
Business Segments
Provides outsourced engineering and designing services and digital transformation services to global manufacturing clients
Comprises products business (value added reselling of software applications and solutions) and education business (upskilling and reskilling solutions for academia and enterprises)
Provides engineering, research and development, and digital solutions services including full vehicle development and turnkey projects
Provides software products and solutions along with third-party software reselling
Provides product development and digital solutions, engineering research and development services to automotive OEMs and tier 1 suppliers
Provides global outsourced engineering services to assist global manufacturing clients in conceiving, designing, developing, and realizing competitive products, including full vehicle turnkey development from concept to production launch, along with digital transformation services and enterprise solutions across automotive, aerospace, and TCHM verticals
Resells third-party software applications, primarily product lifecycle management (PLM) software and solutions, and provides value-added services such as consulting, implementation, systems integration and support through partnerships with Siemens, Dassault Systemes, and Autodesk
Provides 'phygital' education solutions in manufacturing skills including upskilling and reskilling in relation to latest engineering and manufacturing technologies to public sector institutions and private institutions and enterprises through curriculum development and competency center offerings via the proprietary iGetIT platform
Provides design, consulting, prototyping, test and validation, engineering process services for automotive, aerospace and industrial heavy machinery clients
Provides engineering and research & development services
Provides digital transformation services
Provides PLM services and products
Provides academia upskilling and reskilling solutions and solutions for education business
Providing outsourced engineering and designing services and digital transformation services to global manufacturing clients
Contains academia upskilling and reskilling solutions and value added reselling of software applications and solutions. Includes revenue from services pertaining to product business
Provides outsourced engineering services and digital solutions to OEMs and their tier 1 suppliers, delivered through time and material contracts and fixed bid contracts. Includes product development, manufacturing, and customer experience management services.
Comprises education business providing upskilling and reskilling in relation to latest engineering and manufacturing technologies through curriculum development and competency center offerings, and product offerings including discrete sale of software and internally developed products.
SWOT Analysis
Strengths
- • Leading global engineering services provider with deep automotive domain expertise(p.22)
- • Two decades of experience with globally distributed execution model(p.22)
- • Positioned in high-growth ER&D services industry with strong CAGR projections(p.22)
- • Established relationships with Anchor Clients (Tata Motors and JLR) generating material revenue(p.61)
- • High repeat client revenue demonstrating strong customer retention(p.58)
- • Strong utilization rates indicating efficient resource deployment(p.59)
- • Access to Tata brand and group benefits for competitive positioning(p.69)
- • Established OHS and environmental compliance framework aligned with ISO standards(p.207)
- • Significant scale and talent base with 12,451 employees across onshore and offshore locations(p.207)
- • High employee utilization rate demonstrating operational efficiency(p.207)
- • Global footprint and balanced talent distribution supporting competitive differentiation(p.209)
- • Robust enterprise risk management framework aligned to ISO and COSO standards(p.211)
- • Comprehensive business continuity and disaster recovery infrastructure(p.212)
- • Global presence with established subsidiaries across multiple countries(p.288)
- • Diversified service offerings across multiple verticals(p.288)
- • Strong financial performance with growing revenue(p.283)
- • Robust profitability and positive cash flow generation(p.283)
- • Leading position in global ER&D services with deep automotive expertise(p.395)
- • Strong globally distributed onshore-offshore delivery capability(p.395)
- • 19 global delivery centers across North America, Europe and Asia Pacific(p.401)
- • Strong profitability with growing margins(p.389)
- • Debt-free balance sheet with significant cash reserves(p.420)
- • Strong revenue growth driven by Services and Technology Solutions segments(p.416)
- • Recently empaneled by Airbus positioning for aerospace growth(p.399)
Weaknesses
- • Heavy dependence on top 5 clients for revenue generation(p.39)
- • Top 5 clients contribute 57.36% of total revenue from operations(p.40)
- • Critical dependence on Anchor Clients (Tata Motors and JLR) within top clients(p.40)
- • Automotive revenue concentration at 87.89% of Services segment revenue(p.41)
- • Certain corporate records and filings are untraceable(p.41)
- • Past preferential allotments were made in non-compliance with Companies Act, 1956(p.43)
- • Significant dependence on Anchor Clients for revenue(p.62)
- • High employee benefit costs reducing profitability(p.50)
- • Negative operating cash flows in recent periods affecting liquidity(p.45)
- • Significant litigation and regulatory proceedings pending against Promoter(p.49)
- • Exposure to underutilized inter-corporate deposits at below-market rates(p.45)
- • High attrition rates among skilled employees(p.50)
- • Elevated attrition rate creating workforce stability challenges(p.207)
- • Dependence on holding company for brand usage with potential termination rights(p.222)
- • Insurance coverage subject to limitations and potential adequacy gaps(p.212)
- • Significant dependence on parent company (Tata Motors Limited) as primary shareholder(p.288)
- • Concentration of goodwill in acquisition-driven growth(p.282)
- • Limited operational presence with only six domestic offices beyond headquarters(p.288)
- • High concentration of revenue from top 5 clients at 70.92%(p.398)
- • Significant reliance on Tata Motors Group (Anchor Clients) representing 45.96% of revenue(p.398)
- • Education business has lower margins and revenue volatility(p.402)
- • High employee attrition rate of 17.20% in first half of fiscal 2024(p.401)
- • High dependency on third parties for Education business quality and delivery(p.402)
- • Significant exposure to counterparty default risk with government institutions(p.402)
- • Significant working capital investment requirements(p.421)
- • Concentration of credit risk in related-party clients(p.425)
- • Dependence on two anchor clients for material revenue(p.427)
- • Negative operating cash flow in recent period(p.421)
Opportunities
- • Expanding beyond automotive into aerospace and TCHM verticals(p.22)
- • Growing outsourcing trend in ER&D services market(p.22)
- • Access to capital markets through public listing(p.22)
- • Targeting new energy vehicle companies for engineering services expansion(p.44)
- • Significant growth in new energy vehicle revenue segment(p.44)
- • Expansion into emerging markets and geographies(p.55)
- • Technology advancement in emerging areas like artificial intelligence and hydrogen fuel cells(p.61)
- • Corporate social responsibility programs targeting education sector growth(p.209)
- • STEM training and lab initiatives expanding market reach in schools(p.209)
- • Expansion into aerospace and engineering industries with specialized services(p.288)
- • Growing demand for digital transformation services globally(p.288)
- • Expansion of academia and reskilling solutions offerings(p.288)
- • Expansion into adjacent industries from automotive base (aerospace and TCHM)(p.399)
- • Large global engineering upskilling requirement in manufacturing sector(p.402)
- • Cross-selling opportunities across expanded services portfolio(p.399)
- • Growth in developing and new client acquisition(p.399)
- • Expansion of fixed bid contracts for improved margins and cost optimization(p.399)
- • Leveraging proprietary platforms and accelerators for service delivery(p.401)
- • Expansion of public sector engagement through education partnerships in India(p.402)
Threats
- • Automotive industry cyclicality and economic sensitivity(p.41)
- • Risk of client contract termination or non-renewal(p.41)
- • VinFast client concentration risk among non-anchor top 5 clients(p.40)
- • Exposure to APAC region economic volatility affecting two top clients(p.40)
- • Macroeconomic factors affecting automotive industry spending(p.41)
- • Need for continuous innovation to address rapid automotive technology changes(p.41)
- • Regulatory risks related to preferential allotments non-compliance(p.44)
- • Startup new energy vehicle clients pose credit and business continuity risks(p.44)
- • Significant foreign currency exposure affecting profitability(p.47)
- • Data privacy and security compliance costs and risks(p.46)
- • Immigration law restrictions limiting workforce deployment to key markets(p.62)
- • Political and economic instability in key operating regions(p.71)
- • Competition from Group Companies in similar business lines(p.49)
- • Benchmarking provisions in contracts limiting pricing flexibility(p.49)
- • Intense competition from diverse competitor categories in fragmented market(p.209)
- • Regulatory uncertainty from evolving data protection legislation(p.213)
- • Environmental compliance obligations and potential operational penalties(p.207)
- • Cyber security threats requiring continuous investment in defense infrastructure(p.212)
- • Exposure to foreign exchange fluctuations across multiple currency zones(p.300)
- • Competition from larger global IT services and engineering firms(p.274)
- • Risk of impairment of significant goodwill and intangible assets from acquisitions(p.311)
- • Foreign currency exchange rate fluctuations affecting 64.75% of revenues(p.403)
- • Potential loss of SEZ tax benefits impacting effective tax rate(p.403)
- • Rapid technological change and need to continuously innovate services(p.401)
- • Wage inflation and cost pressures from competitive hiring(p.399)
- • Risk of client ownership changes affecting business relationships(p.399)
- • Government policy changes affecting Education business contracts(p.402)
- • Competition and competitive pressures in ER&D services market(p.401)
- • Foreign currency exchange rate fluctuation risk(p.425)
- • Regulatory compliance risk on provident fund contributions(p.428)
- • Pending export benefits dispute(p.429)
- • Multiple pending tax litigations(p.437)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Tata Motors Limited | Promoter | 64.79% | 53.39% |
| Tata Motors Limited | Promoter Selling Shareholder | 11.41% | — |
| Tata Motors Limited | Promoter | 64.79% | 64.79% (subject to finalisation of Basis of Allotment) |
| Tata Motors Finance Limited (previously known as Tata Motors Finance Solutions Limited) | Promoter Group | 2.00% | 2.00% |
| Tata Motors Limited (TML) | Promoter | — | — |
| Tata Motors Limited | Promoter | 64.79% | — |
| Tata Motors Limited | Promoter and Parent Company | 72.48% | 74.69% |
| Alpha TC Holdings Pte Ltd. | Associate of Group company | 8.96% | 7.26% |
| Tata Motors Limited | Parent Company | — | — |
| Tata Motors Limited | Promoter Selling Shareholder | — | — |
| Alpha TC Holdings Pte. Ltd. | Investor Selling Shareholder | — | — |
| Tata Capital Growth Fund I | Investor Selling Shareholder | — | — |
Leadership
Ajoyendra Mukherjee · Chairman and Independent Director
Warren Harris · CEO/Managing Director
Savitha Balachandran · CFO
Vikrant Gandhe · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Tata Technologies IPO FAQs
What is the lot size of Tata Technologies IPO?
The minimum lot size of Tata Technologies IPO is 30 shares. One lot costs ₹15,000 at the cut-off price.
When does Tata Technologies IPO open and close?
Tata Technologies IPO opened for subscription on 22 Nov 2023 and closed on 24 Nov 2023.
What is the listing date of Tata Technologies IPO?
Tata Technologies IPO listed on 30 Nov 2023.