Tata Technologies eyes IPO investment from Morgan Stanley, BlackRock
Tata Technologies is discussing with Morgan Stanley, Blackrock, and several US hedge funds to secure investments for its upcoming initial public offering (IPO). It will be at a valuation of $2.5 billion (roughly Rs. 20,820 crore), reported Reuters. This IPO marks the first for a Tata Group company in 20 years and is anticipated to be available for subscriptions around November 21.
Potential investors and valuation
The company is engaging with US asset management firms such as Ghisallo Capital, Oaktree Capital, and Key Square Capital, in addition to Blackrock and Morgan Stanley, for potential involvement in the $350-375 million (Rs. 2,900-3,100 crore) IPO. The present valuation of $2.5 billion represents a 25% increase from last month when TPG acquired a 9.9% stake during pre-IPO fundraising. Oaktree, Tata, and the other investors did not reply to Reuters' requests for comment.
Tata Technologies' financial performance
In the nine months ending on December 31, 2022, Tata Technologies witnessed a 23% growth in profit, amounting to Rs. 407.4 crore ($48.94 million). Meanwhile, its total income saw a 15% increase, reaching Rs. 3,050 crore ($366.37 million). These details are outlined in the draft IPO papers filed with the regulator in March. "Big investors are quite excited by the Tata brand, and a profitable company with scale ... that's driving demand," a source told Reuters.
