Tata Technologies | Techtwomoney (2024)

Tata Motors subsidiary Tata Technologies filed an addendum on 4th October 2023 with SEBI to its DRHP. According to the addendum filed with SEBI, Tata Tech, one of the most-awaited IPOs on the Street, will now have 9.57 crore shares in its planned initial public offering (IPO) with a face value of ₹2 per share.

According to stock market experts, Tata Technologies IPO price band could be around ₹400 to ₹542 per equity share as valuations of Tata Technologies Limited falls around ₹22,015 crore, if recent 9.9 per cent stake selling by Tata Motors is taken as cue for expected Tata Technologies IPO price. They said that much will depend upon the ofer on the table for investors. To make it more attractive and reasonably priced, Tata Technologies may keep the issue price close to ₹400 whereas to take advantage of the market huype and bull trend in primary market, the company may choose to keep Tata Technologies IPO price at around ₹540 per share levels.

Revenue Breakups :

Tata Technologies' revenue is primarily generated from its engineering services business, which accounts for around 60% of its total revenue. The company's key clients in this segment include Tata Motors, Jaguar Land Rover, and Airbus. The remaining revenue comes from its product development business, which includes the development of products such as automotive components and consumer goods.

It also has a global presence, with operations in over 20 countries, including the US, UK, Germany, China, and India. The company's global delivery model enables it to provide cost-effective engineering solutions to its clients while leveraging the best talent worldwide.

The financial performance has been consistent over the past few years. The company reported a 25.1% growth in revenue to 4,414.18 crs in FY 2022-23 as against 3,529.57 crs in FY 2021-22. Revenue from the sale of services increased by 33.2% to 3,535.22 crs in FY 2022-23 compared with 2,654.84 crs in FY 2021-22.

Products of the company :

1. Autodesk: Autodesk makes software for people who make things. If you’ve ever driven a high-performance car, admired a towering skyscraper, used a smartphone, or watched a great film, chances are you’ve experienced what millions of Autodesk customers are doing with Tata Technologies software. Autodesk is the leader in 3D design, engineering, and entertainment software.

2. CAD Solutions

3. INDUSTRIAL DESIGN & VISUALIZATION.

4. Products Innovation Platform.

5. Data Management.

6. Simulation.

Services of the Company

1. Engineering Research and Development.

2. Product Lifecycle Management.

3. Connected Enterprise IT.

Strengths:

Has a deep expertise in the automotive industry. Its comprehensive portfolio of services addresses product development and enterprise optimisation needs of traditional OEMs and new energy vehicle companies.

It has differentiated capabilities in EVs, which are the new-age automotive trend. The company provides end-to-end solutions for manufacturing, development, and after-sales services for EVs.

The company possesses strong digital capabilities bolstered by proprietary accelerators. These are designed to help OEMs and tier 1 suppliers manage their entire digital product life cycle and engage their customers throughout the product journey.

Has a diversified global presence and partners with some of the biggest manufacturing companies in the world. It has a marquee set of clients across anchor accounts, EV companies, and traditional OEMs.

Has a global delivery model that enables intimate client engagement and scalability.

Has a proprietary e-learning platform that helps them leverage their manufacturing domain knowledge, allowing them to tap into large upskilling and reskilling markets.

It is a well-recognised brand with an experienced promotor, board of directors, and management.

Risks:

• The business derives a material portion of its revenues from its top 5 clients as per revenue generated in Fiscal Year 2022. If any or all of these top 5 clients face any deterioration in their business, it could adversely affect the company’s financial position, cash flows, and results of operations.
• The revenue is dependent on clients concentrated in the automotive sector. Any economic slowdown in this segment can adversely impact the financial condition and operations of the business.
• The company expects a significant inflow of future revenue from new energy vehicle companies, many of which may be start ups. There can be uncertainties about their funding plans, future roadmaps, growth capabilities, creditworthiness, and ownership changes.
• The company may be liable to its clients for damages due to system failures, confidential information disclosure, and data security breaches, which could negatively affect its reputation and client relationships.

Objectives of the Fresh Issue :

• Achieve the benefits of listing the Equity Shares on the Stock Exchanges.
• Carry out the Offer for Sale of up to 95,708,984 Equity Shares by the Selling Shareholders.
• By selling its equity stake in Tata Technologies, Tata Motors will be able to improve its finances and reduce its debt, as per the report. Tata Motors has cumulatively invested Rs 224.1 crore in Tata Technologies.
• General Corporate Purpose

Competitors of Manoj Vaibhav Gems 'N' Jewellers Limited :

Tata Technologies IPO timeline and Dates: