New Delhi: On Monday Tata Motors said its board has given in-principle approval through the IPO route in Tata Technologies for partial divestment of the company’s investment.
Tata Motors said in a stock exchange filing, “We wish to inform you that at the meeting which was held yesterday, i.e. 12th December, 2022, the IPO Committee [duly constituted by the Tata Motors Limited’s Board of Directors] has granted its in-principle approval to explore the possibility of partial divestment of the company’s investment through an IPO route at an opportune time in Tata Technologies Limited, subject to market conditions, regulatory clearances and applicable approvals.”
As and when required, company will make further announcements of all material developments relating to IPO, the company said in a statement.
Since tech behemoth TCS in 2004, this will be the first IPO from Tata Group, the diversified conglomerate and the first under the tenure of N Chandrasekaran, Tata Group’s chairman, who took over in January 2017.
In 1989, a global product engineering and digital services company Tata Technologies was founded as a unit of Tata Motors. The latest annual report shows the automaker held a 74.43 per cent stake in the company as of March 31.
In 2018, Tata Motors backed out of a $360 million agreement to sell a roughly 43% stake in Tata Technologies to private equity company Warburg Pincus, citing delays in obtaining regulatory approvals and performance that fell short of expectations.
According to the 2022 fiscal annual report, increased sales at Tata Technologies drove a 46 per cent increase in Tata Motors’ revenue from other businesses.
With a combined market value of $314 billion, the 29 publicly traded firms are owned by the Tata conglomerate.
As of 2021, With a combined market value of 0f $314 billion, Tata conglomerate owns 29 publicly traded firms.
Tata Motors’ scrip on BSE closed trading flat at Rs 414 on Monday.
