Tata Motors on Monday said its board has given in-principle approval for partial divestment of company’s investment In Tata Technologies through the IPO route.
“We wish to inform you that the IPO Committee [duly constituted by the Board of Directors of Tata Motors Limited], at its meeting held today, i.e., on December 12, 2022 has accorded its in-principle approval to explore the possibility of partial divestment of the company’s investment in Tata Technologies Limited, through an IPO route at an opportune time, subject to market conditions, applicable approvals, regulatory clearances,” said Tata Motors in a stock exchange filing.
The company said it will make further announcements of all material developments relating to IPO, as and when required.
Tata Technologies is a global product engineering and digital services company.
This will be the first IPO from Tata Group, the diversified conglomerate, since tech behemoth TCS in 2004 and also the first under the tenure of Tata Group chairman N Chandrasekaran who took over in January 2017.
Tata Technologies was founded in 1989 as a unit of Tata Motors. The automaker held a 74.43 per cent stake in the company as of March 31, the latest annual report showed.
Tata Motors in 2018 called off a deal to sell an about 43% stake in Tata Technologies to private equity firm Warburg Pincus for $360 million, citing delays in securing regulatory approvals and performance not meeting thresholds.
The 2022 fiscal annual report showed increased sales at Tata Technologies drove a 46 per cent jump in Tata Motors’ revenue from other operations.
The Tata conglomerate had 29 publicly listed companies with a combined market capitalisation of $314 billion as of end 2021.
On Monday, Tata Motors’ scrip on BSE closed trading flat at Rs 414.
