($1 = 82.0630 Indian rupees) (Reporting by Nishit Navin in Bengaluru; Editing by Dhanya Ann Thoppil and Savio D'Souza)
(Adds details of the IPO, background)
BENGALURU, March 10 (Reuters) - Tata Technologies, a
unit of Indian carmaker Tata Motors , filed for an
initial public offering (IPO) on Thursday, according to draft
papers submitted to the market regulator.
However, Tata Tech, which provides engineering and product
development digital services, said it will not offer any of the
95.7 million shares, representing around 23.6% of its paid-up
share capital, to be sold in the IPO.
Instead, Tata Motors, which has a 74.69% stake in Tata Tech,
will sell up to 81.1 million shares, while Alpha TC Holdings
will sell 9.7 million shares and Tata Capital Growth Fund I will
sell 4.9 million shares.
Tata Tech's consolidated profit rose 23% to 4.07 billion
rupees ($49.6 million) in the nine months ended Dec. 31, while
revenue increased 15.5% to 30.12 billion rupees, said the
company, which serves the auto, aerospace and other industries.
The spend on digital services in these industries is
expected to rise from $1.64 trillion in 2021 to $2.28-2.33
trillion by 2025, Tata Tech said, citing a report by Zinnov
Management Consulting.
Tata Motors said in December it was exploring the
possibility of selling part of its stake in Tata Tech through a
public float.
JM Financial, Citigroup Global Markets India and BofA
Securities India are the booking-running lead managers for the
issue.
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