ETMarkets.comNew Delhi: Tata Motors said on Monday that its board has given an in-principle approval to sell a portion of its stake in Tata Technologies, a product engineering and digital services unit of the automaker, through an initial public offering.
The approval is for the public share sale “at an opportune time”, said in a regulatory filing. It will be subject to market conditions, applicable approvals, regulatory clearances and certain other considerations, the company said.
Tata Motors will make further announcements of all material developments relating to the IPO as and when required, it said.
The Tata Group last sold shares in an IPO 18 years ago in 2004, when the salt-to-software conglomerate listed .
Direct-to-home platform Tata Play too is preparing for an IPO. Tata Play pre-filed its draft red herring prospectus confidentially with the Securities and Exchange Board of India on November 29. The company is the first to opt for the pre-filing route for an IPO.
Tata Play or Tata Technologies may become the first IPO under the chairmanship of N Chandrasekaran, who took over as the group chairman in 2017.
Tata Motors has a 74.42% stake in Tata Technologies, according to the automaker’s latest annual report.
Tata Motors has been keen on leaving the technology services business for over five years as part of a larger strategy to exit non-core subsidiaries.
In 2018, it called off a planned sale of 43% in Tata Technologies to private equity firm Warburg Pincus for $360 million, citing non-receipt of regulatory approvals and challenges in internal performance due to market conditions.
Founded in 1989, Tata Technologies offers technology services across the automotive, industrial machinery, aerospace, and adjacent verticals.
The approval is for the public share sale “at an opportune time”, said in a regulatory filing. It will be subject to market conditions, applicable approvals, regulatory clearances and certain other considerations, the company said.
Tata Motors will make further announcements of all material developments relating to the IPO as and when required, it said.
The Tata Group last sold shares in an IPO 18 years ago in 2004, when the salt-to-software conglomerate listed .
Direct-to-home platform Tata Play too is preparing for an IPO. Tata Play pre-filed its draft red herring prospectus confidentially with the Securities and Exchange Board of India on November 29. The company is the first to opt for the pre-filing route for an IPO.
Tata Play or Tata Technologies may become the first IPO under the chairmanship of N Chandrasekaran, who took over as the group chairman in 2017.
Tata Motors has a 74.42% stake in Tata Technologies, according to the automaker’s latest annual report.
Tata Motors has been keen on leaving the technology services business for over five years as part of a larger strategy to exit non-core subsidiaries.
In 2018, it called off a planned sale of 43% in Tata Technologies to private equity firm Warburg Pincus for $360 million, citing non-receipt of regulatory approvals and challenges in internal performance due to market conditions.
Founded in 1989, Tata Technologies offers technology services across the automotive, industrial machinery, aerospace, and adjacent verticals.
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