Tata Technologies IPO: SEBI’s Approval Marks Tata Group’s First Public Issue in 20 Years

Capital markets regulator SEBI (Securities and Exchange Board of India) has granted approval for the IPO of Tata Technologies, a subsidiary of Tata Motors. This development marks the first public issue from the Tata group since Tata Consultancy Services (TCS) in July 2004. Tata Technologies, SBFC Finance, and Gandhar Oil Refinery are set to list their shares on the BSE and NSE.

Tata Technologies IPO Details

1. Tata Technologies to Launch Offer for Sale (OFS) IPO

Tata Technologies will be offering an OFS IPO, wherein existing shareholders will sell up to 9.57 crore equity shares, representing approximately 23.60 percent of the company’s paid-up share capital. The parent company, Tata Motors, plans to sell 8.11 crore shares (20 percent), while Alpha TC Holdings Pte and Tata Capital Growth Fund I will offload up to 97.16 lakh shares (2.4 percent) and 48.58 lakh shares (1.2 percent), respectively.

2. IPO Size and Allocation

The size of the Tata Technologies IPO is yet to be disclosed, but market sources estimate it to be around Rs 4,000 crore. The offer is expected to reserve 50 percent for qualified institutional buyers (QIBs), 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.

SBFC Finance IPO Details

1.  SBFC Finance Plans Rs 1,200 Crore IPO

Mumbai-based non-banking financial company SBFC Finance aims to raise Rs 1,200 crore through an IPO. The offering will consist of fresh issuance of shares worth Rs 750 crore and an OFS of Rs 450 crore. The OFS portion includes contributions from Arpwood Partners Investment Advisors LLP, Arpwood Capital Private Limited, Eight45 Services LLP, and SBFC Holdings Pte. Ltd.

2. Allocation and Usage of IPO Proceeds

Around 50 percent of the net offer will be allocated to QIBs, 15 percent to non-institutional investors (NIIs), and 35 percent to retail investors. The funds raised through the fresh issuance of shares, amounting to Rs 750 crore, will be utilized to strengthen SBFC Finance’s capital base. The company primarily serves entrepreneurs, small business owners, self-employed individuals, and salaried individuals.

Gandhar Oil Refinery IPO Details

1. Gandhar Oil Refinery’s IPO Includes Fresh Issue and OFS

Gandhar Oil Refinery’s initial share sale will comprise a fresh issue of equity shares worth Rs 357 crore and an OFS of 1.2 crore shares by promoters and existing shareholders. The OFS is expected to raise Rs 500 crore, as per market sources. The proceeds from the fresh issue component will be used to repay debt, purchase equipment, and undertake civil work required for capacity expansion at the company’s Silvassa plant.

2. Utilization of Funds and IPO Structure

Additionally, the funds will be utilized for expanding the capacity of the petroleum jelly and cosmetic product division at Gandhar’s Taloja plant. The expansion of white oils capacity will involve installing blending tanks, along with funding working capital requirements.

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