Tata Technologies IPO, a primer

Tata Technologies, which went public November 30th, is a subsidiary of the Tata Group. The company is an engineering and design firm in the automotive and aerospace sectors. For more info on a Tata Technologies IPO, see below.

The history of the Tata Group, a conglomerate founded in 1868 by Jamsetji Tata, is a story of innovation, diversification, and global expansion. From its humble beginnings as a trading company, the Tata Group has grown into a multinational enterprise with a presence in over 100 countries across various industries.

Early Years and Expansion:

• 1868-1938: Jamsetji Tata laid the foundation of the group with a vision to industrialize India. His sons, Sir Dorabji Tata and Ratanji Tata, continued his legacy. Major early milestones include the establishment of Tata Iron and Steel Company (now Tata Steel) in 1907, and the setting up of the Tata Hydro-Electric Power Supply Company in 1910.
• 1938-1991: JRD Tata, who became the youngest Chairman in the group’s history in 1938, led the conglomerate for over half a century. Under his leadership, significant expansions took place, including the establishment of Tata Chemicals (1939), Tata Motors (1945), and Tata Consultancy Services (1968). The group also made strides in consumer goods, with the launch of India’s first cosmetics brand, Lakme, in 1952, and Titan Industries, a watch-making company, in 1984.

Global Presence and Modern Developments:

• 1991-Present: Ratan Tata, who succeeded JRD Tata in 1991, spearheaded the group’s global expansion. Key acquisitions include Tetley Tea (2000), Corus Group (2007), and the iconic brands Jaguar and Land Rover (2008). Under N. Chandrasekaran’s chairmanship since 2017, the group has continued to grow, with Tata Steel forming a joint venture with ThyssenKrupp in 2018 and TCS becoming the first Indian IT company to reach a $100 billion market cap.

Subsidiaries and Business Segments: The Tata Group operates in diverse sectors, including IT, automotive, steel, consumer and retail, infrastructure, and financial services. Its notable companies include:

• Tata Consultancy Services (TCS): A global leader in IT services and business solutions.
• Tata Motors: A major player in the automotive industry, manufacturing a range of cars, utility vehicles, trucks, buses, and defense vehicles.
• Tata Steel: One of the world’s leading steel producers.
• The Indian Hotels Company Limited: Known for its prestigious Taj brand in the hospitality sector.
• Tata Consumer Products Ltd: Engaged in the trading, production, and distribution of consumer products, particularly beverages like tea and coffee.

Recent Developments and Future Outlook: In recent years, the group has focused on digital innovation, sustainable development, and expanding its global footprint. The establishment of the Tata Innovation Center at Cornell Tech and investments in new sectors like the airline industry with AirAsia India and Vistara highlight this forward-looking approach.

The Tata Group’s journey from a local enterprise to a global conglomerate is a testament to its adaptability, commitment to innovation, and adherence to strong ethical principles. This legacy continues to drive its growth and expansion into new markets and industries.

For a comprehensive view of Tata Group’s history and developments, please refer to the Tata Group’s official timeline on their website and the detailed account provided on Groww.in.

Tata Technologies IPO

Tata Technologies’ Initial Public Offering (IPO) was a significant event, marking the first by a Tata Group entity in 20 years. The IPO was listed on the stock markets on November 30, 2023. It was a book-built issue worth ₹3,042.51 crores, entirely an offer for sale of 6.09 crore shares. The price band for the IPO was set between ₹475 to ₹500 per share, with a minimum lot size of 30 shares.

The IPO opened for bidding on November 22, 2023, and closed on November 24, 2023. The shares were listed on both BSE and NSE. The IPO saw significant interest, with different categories of investors offered specific allotments: Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), Retail Individual Investors (RIIs), employees, and anchor investors.

Tata Technologies, founded in 1994, provides product development and digital solutions. It has two business verticals: Services, involving outsourcing engineering and digital transformation services, and Technology Solutions, including the resale of third-party software applications.

The IPO’s objectives were to achieve the benefits of listing the shares on stock exchanges and to carry out the offer for sale by the selling shareholders. The IPO received a strong response from investors, underscoring the “TATA” brand’s reputation in the market.

For detailed information, you can refer to the RHP document provided by Tata Technologies on SEBI’s website.

What happened to Tata Technologies IPO?

Tata Technologies Ltd. achieved a remarkable feat in its stock market debut, with its share value soaring significantly on its first trading day. This surge in share price marked one of the most impressive first-day performances for an IPO of its size in India. The company’s shares, initially offered at 500 rupees, reached a peak of 1,400 rupees during the trading session before settling at 1,313 rupees at the day’s close. This impressive debut reflects the strong investor confidence in Tata Technologies, a subsidiary of Tata Motors Ltd. known for its engineering research and product development services. The IPO, which raised a substantial amount, was heavily oversubscribed, indicative of the high investor demand. This listing marks a significant milestone for the Tata Group, being the first since Tata Consultancy Services Ltd.’s IPO nearly two decades ago. Tata Technologies, with a focus on expanding into areas like aerospace, transportation, and electric vehicles, sees this IPO as an opportunity to leverage capital market support for future growth.

“The IPO opens new growth opportunities and deepens our understanding that how in the future we intend to leverage the support of the capital markets,” said CEO Warren Harris of the event.

Who are Tata Technologies competitors?

Tata Technologies, a subsidiary of the Tata Group, operates in a competitive landscape with several notable players in the engineering and product development digital services sector. According to information from Craft.co and Owler, its competitors include companies that offer similar services in areas such as quality assurance, software development, and SAP solutions.

Some of Tata Technologies’ main competitors include:

1. VMC: A company that provides quality assurance services. VMC is a subsidiary and operates with a smaller employee base compared to Tata Technologies.
2. Exactpro: Specializes in quality assurance services and software development with a focus on test automation for financial market infrastructure. Exactpro is a private company with a significant presence in its niche.
3. DevOn: Offers software development services and is a private company, similar to Exactpro in its service offerings.
4. Flexso: A provider of SAP solutions, Flexso operates in a similar domain to Tata Technologies with a focus on technology and IT services.
5. Cyient: Headquartered in Hyderabad, India, Cyient is one of Tata Technologies’ biggest rivals and operates in the same field. Cyient generates a higher revenue compared to Tata Technologies.
6. KPIT: Another significant competitor, KPIT is a public company founded in Pune, Maharashtra. It operates in the same industry as Tata Technologies but has a slightly smaller employee count.
7. Persistent: Competing in the same domain, Persistent, headquartered in Pune, Maharashtra, was founded in 1990. It generates a higher revenue compared to Tata Technologies.
8. Belcan, L&T, and Infosys: These companies are also among Tata Technologies’ top competitors, offering a range of services in the technology and engineering sectors.

The competitive landscape for Tata Technologies is diverse, with companies varying in size, specialization, and global presence. The competitors range from those offering specific niche services to large, diversified corporations.

For more detailed information about Tata Technologies and its competitors, you can visit Craft.co and Owler.