Tata Technologies In Talks With Morgan Stanley, BlackRock For IPO Investment: Report

Tata Technologies is reportedly in advanced discussions with several notable investors for its eagerly awaited initial public offering (IPO) at a substantial valuation of USD 2.5 billion, as per Reuters. The company specialises in offering engineering services primarily to clients in the automotive and aerospace sectors. 

Prominent names like Morgan Stanley Investment Management, BlackRock and a selection of prominent US hedge funds have emerged as potential investors in Tata Technologies' IPO. The company is actively engaged with US asset management firms such as Ghisallo Capital, Oaktree Capital and Key Square Capital, indicating substantial interest from the investor community. These discussions revolve around securing a place in Tata Technologies' anchor book, an opportunity where distinguished institutional investors receive share allocations ahead of the offering's release to retail and other investors.

The Tata Technologies IPO is a significant milestone, as it is the first such offering by a Tata Group company in over two decades.

The company's valuation, under scrutiny for this upcoming IPO, stands at USD 2.5 billion, marking a significant surge of approximately 25 per cent from the valuation recorded just last month when TPG secured a notable 9.9 per cent stake in a preliminary fundraising round. 

The IPO is expected to open for subscriptions around 21 November, with expectations running high for it to potentially become one of the most substantial IPOs in India this year, following in the footsteps of prominent offerings such as Mankind, a well-known condom manufacturer and Nexus Malls, which is owned by Blackstone. 

Tata Technologies' draft IPO papers, filed with regulators in March, reveal that its profits for the nine months ending on 31 December 2022, grew by 23 per cent to reach Rs 4,074 million (equivalent to USD 48.94 million). The company's total income demonstrated a robust growth rate of 15 per cent, resulting in a figure of Rs 30.5 billion (equivalent to USD 366.37 million) during the same reporting period.