Tata Technologies Limited IPO

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Tata Technologies is a company that has a history of more than three decades in the engineering and IT services industry.

i. The company was envisioned by the then-Tata Group chairman, Mr. Ratan Naval Tata, who saw an opportunity in the evolving product engineering and manufacturing IT space.

ii. Tata Technologies was founded in 1989 as Tata Engineering Services, a division of Tata Motors, to provide engineering and design services to the automotive industry.

iii. In 1994, the company became an independent entity and changed its name to Tata Technologies.

iv. In 2005, the company acquired INCAT International, a UK-and US-based automotive and aerospace computer engineering company, to expand its global presence and capabilities.

v. In 2017, the company received a strategic investment of $360 million from Warburg Pincus, a private equity firm, to support its growth plans and digital transformation initiatives.

vi. In 2020, the company launched its new brand identity and manifesto, with the vision of engineering a better world for everyone.

vii. Today, the company provides services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to automotive and aerospace original equipment manufacturers and their suppliers. It is a subsidiary of Tata Motors and has headquarters in Pune, India. The company operates in 25 countries and has a global workforce of more than 11,000 employees.

Tata Technologies is a company that provides various services to the automotive and aerospace industries, such as:

i. Engineering and design: Tata Technologies helps its customers develop innovative and competitive products that meet the market needs and customer expectations. The company offers services such as concept design, product engineering, simulation and testing, validation and verification, etc.

ii. Product lifecycle management: Tata Technologies helps its customers manage the entire lifecycle of their products, from ideation to retirement. The company offers services such as PLM software sales, implementation, integration, customization, training and support, etc.

iii. Manufacturing: Tata Technologies helps its customers optimize their manufacturing processes and operations, by leveraging digital technologies and best practices. The company offers services such as digital manufacturing, manufacturing engineering, plant automation, industrial IoT, etc.

iv. Product development: Tata Technologies helps its customers accelerate their product development cycles and reduce costs, by providing end-to-end solutions that cover all aspects of product development. The company offers services such as project management, system engineering, software development, hardware development, etc.

v. IT service management: Tata Technologies helps its customers improve their IT performance and efficiency, by providing IT solutions and services that align with their business goals and strategies. The company offers services such as IT consulting, IT infrastructure management, IT application management, IT security management, etc.

Competitive Strengths

i. Deep expertise in the automotive industry
ii. Differentiated capabilities in new age automotive trends – electric vehicles (“EVs”), connected and autonomous
iii. Strong digital capabilities bolstered by proprietary accelerators

Objects of the Tata Technologies Limited IPO:

The objects of the Offer are: i. Achieve the benefits of listing the Equity Shares on the Stock Exchanges; ii. Carry out the Offer for Sale of up to 60,850,278 Equity Shares by the Selling Shareholders.

Tata Technologies Limited IPO Details:

Open Date: Nov 22 2023
Close Date: Nov 24 2023
Total Shares: 60,850,278
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Building
Issue Size: 3,042.51 Cr.
Lot Size: 30 Shares
Issue Price: ₹ 475 to ₹500 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 05 2023

Promoters And Management:

i. Ajoyendra Mukherjee is the Chairman and Independent Director of the Company. He holds a bachelor’s degree in engineering (electrical and electronics) from the Birla Institute of Technology and Science. He was previously associated with Tata Consultancy Services Limited for almost four decades, where he held positions such as the head of business operations in Eastern India, Middle East and Africa, Switzerland, global head of CSR function, global head of energy and utilities practice and executive vice president and global head of human resources ii. Warren Kevin Harris is the Chief Executive Officer and Managing Director of the Company. He holds a bachelor’s degree in engineering (technology) from the University of Wales Institute of Science and Technology, the University of Wales. He holds a doctorate in philosophy (honoris causa) from Amity University, Uttar Pradesh. He has completed the advanced management programme from Harvard Business School. He is a chartered mechanical engineer registered with and a member of the Institution of Mechanical Engineers. He was also awarded with the Malcolm Baldridge National Quality Award for outstanding services to the nation as part as a member of the Board of Overseers of the Malcolm Baldrige National Quality Award for the period from 2013-2016. iii. Usha Sangwan is an Independent Director of the Company. She holds a bachelor’s degree in arts and a master’s degree in arts (economics) from Panjab University and a post-graduate diploma in human resource management from Indira Gandhi National Open University. has successfully completed a licentiate examination (life branch) from Federation of Insurance Institutes. She is a member of the Financial Services Institutions Bureau, Diversity and Inclusion Committee of the Bombay Chamber of Commerce and Industry and a charter member of Equalifi. Prior to joining the Company, she was associated with the Life Insurance Corporation of India as the managing director.

Financials of Tata Technologies Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 418.07 418.07 811.34
Reserves 21,003 22,384 29,083
Trade Payables 2,237 3,366 6,578
Other Liabilities 12,069 16,012 15,542
Total Liabilities 14,306 19,378 22,120
Net Block 872 1,145 1,202
Capital Work in Progress 0.4 3 26
Other Assets 10,980 11,230 12,812
Total NC Assets 11,852 12,378 14,040
Receivables 5,958 7,682 11,062
Cash & Bank 7,834 8,694 9,992
Other Assets 10,084 13,426 16,920
Face value 2 2 2
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 23,809 35,296 44,142
Raw Material Cost 3,383 6,885 6,825
Change in Inventory 2,414 3,998 5,697
Employee Cost 12,160 15,127 19,295
Other Expenses 1,995 2,829 4,116
Other Income 448 488 878
EBITDA 4,305 6,945 9,087
EBITDA Margin 18.08% 19.68% 20.59%
Depreciation 922 857 946
Interest 177 219 180
Profit before tax 3,153 5,869 7,962
Tax 761 1,499 1,721
Net profit 2,392 4,370 6,240
NPM (%) 9.86% 12.21% 13.86%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 4,174 6,693 8,635
Receivable 1,483 -1,856 -3,026
Payable -299 1,102 3,025
Loans And Advances 0.3 -19 -10
Other WC Items 6,873 -5,029 -2,181
Working Capital Changes 6,575 -3,946 835
Direct Taxes -1,102 -1,278 -2,429
Net Cash Inflow from Operating Activity 11,129 -387 4,014
Cash from Investing Activity
Fixed assets purchased -147 -634 -657
Fixed assets sold 10 5 4
Inter-corporate deposits -2,235 2,075 -4,423
Other investing items -4,363 -704 9,949
Net cash inflow from investing activities -6,736 742 4,874
Cash from Financing Activity
Proceeds from shares 2 0 -2959
Intrest paid fin -25 -4 -0.5
Financial liabilities -419 -439 -509
Other financing items 0 -1 -0.2
Net Cash Flow 3952 -89 -4329

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Tata Technologies Limited 4,414 624 15.38 32.5 500 20,283
KPIT Technologies Limited 3,365 387 13.90 86.2 1,537 42,126
L&T Technology Services Limited 8,014 1,174 110.8 37.1 4,454 47,068
Tata Elxsi Limited 3,145 755 121.26 65.9 8,307 51,731
* All the data is as per FY23.

Recommendation on Tata Technologies Limited IPO:

Review and Recommendation of Tata Tech IPO by IZ team is 6/10


Established on August 22, 1994, Tata Technologies Limited, a subsidiary of Tata Motors Ltd, has cemented its position as a leading global engineering services company. Specializing in product development and digital solutions, the company notably serves global Original Equipment Manufacturers (OEMs) and Tier-1 suppliers. With deep domain expertise in the automotive industry, Tata Technologies extends its services to adjacent sectors like aerospace, transportation, and construction heavy machinery (TCHM).

Core Business and Market Position

1. Engineering Research & Development (ER&D) Tata Technologies stands as a pure-play manufacturing-focused ER&D entity. Predominantly oriented towards the automotive sector, it collaborates with 7 of the top 10 automotive ER&D spenders and 5 of the top 10 new energy ER&D spenders as of 2022. This engagement underscores the company's influential presence and expertise in the field. 2. Service Offerings The primary business line revolves around services, including outsourced engineering and digital transformation services. These services aid global manufacturing clients in the conception, design, development, and delivery of superior products. 3. Technology Solutions In addition to services, Tata Technologies offers Technology Solutions, encompassing Products and Education businesses. The Products segment involves reselling third-party software applications, primarily focusing on Product Lifecycle Management (PLM) software and related services. The Education segment aims at equipping the upcoming generation of engineers and technicians with industry-relevant skills.

Global Presence and Partnerships

Tata Technologies boasts a diversified global client base, supported by 19 delivery centers across North America, Europe, and the Asia Pacific as of September 30, 2023. The company has forged significant partnerships and alliances with entities like Dassault, Logility, Siemens Industry Software Inc., Codincity, and Fantasy, and leverages Microsoft AZURE products/services. A recent empanelment by Airbus marks a significant stride, potentially opening new growth avenues.

Financial Performance and Valuation

Financial Growth Tata Technologies has demonstrated robust revenue and margin growth over the years, reinforcing its status in the global engineering services domain. The company's comprehensive service portfolio caters to both traditional OEMs and emerging new energy vehicle companies, along with their supply chains. Valuation Metrics At the upper price band, Tata Technologies is valued at a Price-to-Earnings (P/E) ratio of 32.5x, translating to a market capitalization of ₹20200 Cr post the issuance of equity shares. The return on net worth stands at 20.8%. The nearest Peer is KPIT which is trading at P/E of 80x. The GMP of 300+ Indicating a strong listing gain.


Tata Technologies, through its extensive expertise and global presence, has established itself as a key player in the engineering services domain, particularly in the automotive sector. The company's strategic partnerships, global delivery centers, and diversified service offerings position it well to capitalize on the evolving demands of the manufacturing industry. With a strong financial footing and a forward-looking approach, with reasonable valuation, the Tata Technologies is poised for continued growth and innovation in the global engineering landscape.

Registrar of Tata Technologies Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Tata Technologies Limited Plot No. 25, Rajiv Gandhi Infotech Park Hinjawadi, Pune 411 057 Phone: +91 20 6652 9090 Email: ipo@tatatechnologies.com Websitehttp://www.tatatechnologies.com/

Discussion on Tata Technologies Limited IPO:


    Can anyone please let me know the propotionate allotment in shareholder category. What does it mean and how do we take benefit of it?

      Proportionate allotment means the more shares or lots you bid for the more are your chances of allotment. You can take benefit from it in this ipo under shareholder quota by applying for max i.e 13 lots under shareholder quota for maximum chances of allotment of 1 lot + some shares.

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