About the Company:
Tata Technologies Ltd is a leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (“OEMs”) and their tier 1 suppliers.
Company is a pure-play manufacturing focused ER&D company, primarily focused on the automotive industry and are currently engaged with seven out of the top 10 automotive ER&D spenders.
For automotive ER&D services, company is ranked first among India service providers and third globally among rated service providers
Company endeavors to create value for our clients by helping them develop products that are safer, cleaner and improve the quality of life for their end-customers.
Company has deep domain expertise in the automotive industry and leverage this expertise to serve clients in adjacent industries, such as in aerospace and transportation and construction heavy machinery (“TCHM”).
As a global organization, company brings together diverse teams from different parts of the world with multiple skill sets to collaborate in real time and solve complex engineering problems for our clients.
Company leverages its deep manufacturing domain knowledge to deliver value-added services to clients in support of their digital transformation initiatives including product development, manufacturing and customer experience management.
Company’s Primary business verticals:
Services Business:
Company’s primary business line is services (“Services”), which includes providing outsourced engineering services and digital transformation services to global manufacturing clients helping them conceive, design, develop and deliver better products.
Company’s Services business contributed Rs.3531 crores and Rs. 1986 crores to our revenue from operations in Fiscal 2023 and the six-months period ended September 30, 2023, respectively, comprising 80.00% and 78.62% of our revenue from operations for the respective periods.
Technology Solutions Business:
Company complements our service offerings with our Products and Education businesses (collectively, “Technology Solutions”).
Through our Products business we resell third-party software applications, primarily product lifecycle management (“PLM”) software and solutions and provide value-added services such as consulting, implementation, systems integration and support.
Company’s Education business provides “phygital” education solutions in manufacturing skills including upskilling and reskilling in relation to the latest engineering and manufacturing technologies to public sector institutions and private institutions and enterprises through curriculum development and competency center offerings through our proprietary iGetIT platform.
In Fiscal 2023 and the six-months period ended September 30, 2023, company’s Technology Solutions business contributed Rs. 883 cr and Rs.540 cr to our revenue from operations, respectively, comprising 20.00% and 21.38% of our revenue from operations for the respective periods.
Company’s Revenues from Services Business & Technology Solutions Business: (in millions)
Company’s Delivery Centers and Employee Count:
As of September 30, 2023, company has 19 global delivery centers spread across North America, Europe and Asia Pacific, with each center staffed by a majority of local nationals enabling us to provide uninterrupted service to our clients and tap into specialist skill sets in different geographies.
As of September 30, 2023, company had 12,451 employees, comprising 11,608 full-time employees (“FTEs”) and 843 contracted employees.
Company’s Human Resources:
Company’s employee headcount by job type:
Company’s Clients:
Company has a diversified global presence across Asia Pacific, Europe and North America and partner with many of the largest manufacturing enterprises in the world.
As of September 30, 2023, company’s clients are comprised of more than 35 traditional automotive OEMs and tier 1 suppliers and more than 12 new energy vehicle companies.
Company’s client portfolio includes our Anchor Clients, TML and JLR, leading traditional OEMs and tier 1 suppliers such as Airbus, McLaren, Honda, Ford, and Cooper Standard.
Company’s Active Clients and Client Concentration:
Company is a subsidiary of Tata Motors Limited:
As a subsidiary of Tata Motors Limited (“TML”), company benefit from long-term relationships with both TML and JLR.
The long-standing engagements with TML and JLR (collectively, our “Anchor Clients”) have enabled the incubation of skills and capabilities that has assisted us in pursuing opportunities outside of the Tata Group.
Company’s Geographywise Revenue: (in millions)
Competition in the Business:
Company’s key competitors in the ER&D service market include pure play Indian ER&D service providers such as L&T Technology Services, KPIT Technologies and Tata Elxsi, IT service providers such as Tata Consulting Services (“TCS”), Wipro and Tech Mahindra, global ER&D service providers such as Bertrandt, Magna Steyr and EDAG.
The table below sets out the comparative view of the top service providers:
Management Team:
- Mr. Ajoyendra Mukherjee (Designation: Chairman and Independent Director)
- Mr. Warren Kevin Harris (Designation: Chief Executive Officer and Managing Director)
Positives for the Company:
- Deep expertise in the automotive industry.
- Differentiated capabilities in new age automotive trends – electric vehicles, connected and autonomous.
- Strong digital capabilities bolstered by proprietary accelerators.
- Marquee set of clients across anchor accounts, traditional OEMs and new energy vehicle companies.
- Global delivery model enabling intimate client engagement and scalability.
- Proprietary e-learning platform leveraging our manufacturing domain knowledge to tap into the large upskilling and reskilling
- market.
- Well-recognized brand with experienced Promoter, board of directors and management team.
Objectives of the Issue:
Offer for Sale: (Rs. 3042 cr)
- Company will not receive any proceeds of the Offer for Sale by the Selling Shareholders. Each of the Selling Shareholders will be entitled to the respective proportion of the proceeds of the Offer for Sale.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 2425.7 | 3578.3 | 4501.9 | 2587.4 |
| Net Profit | 239.1 | 436.9 | 624.0 | 351.9 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Tata Technologies Ltd | 2 | 15.37 | 32.53 | 20.87% | 73.65 |
| KPIT Technologies Ltd | 10 | 14.10 | 80.31 | 22.91% | 61.58 |
| L&T Technology Services Ltd | 2 | 110.48 | 37.47 | 23.54% | 470.66 |
| Tata Elxsi Ltd | 10 | 121.26 | 61.55 | 36.21% | 334.92 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 22nd November 2023 |
| Issue Closes on | 24th November 2023 |
| Issue Price | Rs.475 – 500 |
| Face Value | Rs.2 |
| Retail Category Allocation | 35% |
| Minimum Lot | 30 Shares |
| Minimum Investment | Rs. 15,000 |
| Issue Constitutes | 14.99% |
| Issue Size | Rs.3042 cr ($366 million) |
| Market Cap | Rs.20,283 cr ($2.44 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 6,08,50,278 |
| Equity Shares Prior to the Issue | 40,56,68,530 |
| Equity Shares after the Issue | 40,56,68,530 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 30th November 2023 |
| Initiation of Refunds | on or Before 1st December 2023 |
| Credit of Equity Shares: | on or Before 4th December 2023 |
| Listing Date: | on or Before 5th December 2023 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 15.37 | 32.53 | 20.87% | 73.65 |
| Company Contact Info: |
|---|
| Tata Technologies Ltd Plot No. 25, Rajiv Gandhi Infotech Park, Hinjawadi, Pune 411 057, Maharashtra, India. Telephone: +91 20 6652 9090 Email: ipo@tatatechnologies.com Website: www.tatatechnologies.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 1st Floor, 247 Park L.B.S Marg Vikhroli West, Mumbai 400 083 Maharashtra, India Tel: +91 810 811 4949 E-mail: tatatechnologies.ipo@linkintime.co.in Website: www.linkintime.co.in |
