Tata Motors to partially sell stake in subsidiary Tata Tech via IPO
Tata Motors’ board has approved a partial divestment of the company in Tata Technologies, its wholly owned subsidiary, through an initial public offering (IPO), the parent firm said in an exchange filing. The subsidiary is into product engineering and digital services.
“We wish to inform you that the IPO committee (duly constituted by the board of directors of Tata Motors) at its meeting held 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, a subsidiary of the company, through an IPO route at an opportune time,” it said in the filing.
The IPO would be the Tata group’s first since it listed Tata Consultancy Services in 2004, if this offering comes before Tata Play’s. It would also be the first under the chairmanship of N Chandrasekaran, who took over as Tata group chairman in 2017.
The Tata Technologies IPO will be subject to market conditions, applicable approvals, regulatory clearances (including observations from Sebi), and certain other considerations, Tata Motors said.
The company would make further announcements of all the developments relating to the IPO, as and when required, as per the SEBI LODR Regulations and other applicable laws, it added.
