Everything you need to know about Tata Technologies IPO

There’s a massive software megatrend playing out in the industry — it’s called ACE.

There are Autonomous cars — which can automatically help you avoid a head-on collision. It involves Connected vehicles that are linked to the internet for your infotainment systems. And there’s a paradigm shift towards Electric vehicles due to environmental concerns.

But carmakers aren’t tech experts. And many of them don’t want to hire in-house teams to build all this electrification and tech stuff either.

So guess who wins?

Companies like Tata Technologies. They’re doing the hard work and helping auto manufacturers to outsource to innovate and launch products quicker.

But will its IPO draw investor attention given that Tata Elxsi, a rival from the house of Tata, is already listed on the stock exchanges? Is the IPO pricing too high? And the big question is if the market is actually large enough to accommodate all the players?

You can read this story by Finshots to learn more about Tata Technologies and its IPO.

What does Tata Technologies do?

Incorporated in 1994 as a part of the Tata Group, Tata Technologies is one of the leading global engineering services companies offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs) and their tier-1 suppliers. It is a subsidiary of Tata Motors Ltd.

They mainly operate in the automotive industry and in adjacent industries, such as aerospace and transportation and construction heavy machinery (TCHM).

What is the issue size of Tata Technologies IPO?

The company is offering 6.085 crore equity shares aggregating up to Rs. 3,042.51 crores in its IPO comprising OFS by its promoter Tata Motors Ltd., Alpha TC Holdings, and Tata Capital Growth Fund.

What are the various shareholder categories one can apply?

Category Lot Range Min Amount Max Amount
Retail 1 - 13 14250 195000
Employee 1 - 33 14250 495000
Shareholder 1 - 13 14250 195000
HNI (Small) 15 - 66 213750 990000
HNI 71 or more 1011750 NA

Note: The minimum application amount is based on the lower end of the price band and the maximum amount is based on the upper end of the price band

What categories can eligible Tata Motors or DVR shareholders apply?

Those investors who have held Tata Motors or Tata Motors DVR shares on 13th November can apply in the following categories:

  • Shareholder + Retail
  • Shareholder + HNI (Small)
  • Shareholder + HNI

Points to be noted:

  • Although an eligible employee can bid up to 4.95 Lacs, bid amount up to 1.95 Lacs shall be considered in the first instance and the balance shall be considered only in case of under-subscription in the employee reservation portion.

Financials of Tata Technologies.

Financial Year Total Assets (₹ crores) Total Revenue (₹ crores) Profit After Tax (₹ crores) EPS EBITDA (₹ crores)
March 31, 2020 2,572.97 2,896.96 251.57 6.20 515.36
March 31, 2021 3,572.74 2,425.74 239.17 5.89 430.53
March 31, 2022 4,218.00 3,578.38 436.99 10.77 694.46
March 31, 2023 5,201.49 4,501.93 624.04 15.38 908.69

Revenue break-up - Segment wise

Particulars FY23 FY22 FY21 FY20
Services Segment: 80% 75.12% 80.40% 82.16%
Automotive 70.94% 64.51% 66.08% 66.94%
Others 9.05% 10.61% 14.32% 15.22%
Technology Solutions 20% 24.88% 19.60% 17.84%

Revenue break-up - Geography wise

Particulars FY23 FY22 FY21 FY20
India 29.76% 32.40% 28.98% 30.07%
Europe 22.83% 24.34% 30.96% 34.31%
North America 21.44% 22.44% 31.86% 30.03%
Rest of World 25.97% 20.82% 8.20% 5.59%

Comparison with peers (FY23)

Company Revenue (Operations) Profits EBITDA PE EPS
LTTS 8013.6 1169.80 1918.70 37.47 110.80
KPIT Tech 3365.03 386.86 675.65 80.31 14.10
Tata Elxsi 3144.72 755.20 1034.91 61.55 121.26
Tata Tech 4414.18 624.04 908.69 NA 15.38

Note: Revenue, Profits and EBITDA numbers are in crores

Risk factors to consider:

Competition from Group Companies: Certain Group Companies operate in a similar line of business, which may lead to competition with these entities and could potentially result in a loss of business opportunity for THE Company.

Susceptible to exchange rate fluctuations: Exchange rate fluctuations in various currencies in the company does business could materially and adversely impact the business, financial condition, and results of operations.

Dependence on Top 5 clients: As of December 31, 2022, the Company derives 72.75% of the revenue from its Top 5 Clients which include Tata Motors Limited, Tata Technologies’ Promoter, and certain of its subsidiaries. If any or all of the Top 5 Clients were to suffer a deterioration of their business, cease doing business, or substantially reduce their dealings, the revenues could decline, which may have a material adverse effect on the business, results of operations, cash flows, and financial condition.

Vulnerable to cyclicalities in the Automotive segment: The Company’s revenue is highly dependent on clients concentrated in the automotive segment. An economic slowdown or factors affecting this segment may have an adverse effect on the business, financial condition, and results of Operations.

Schedule/Timeline of Tata Technologies Limited IPO

Issue Period 22nd November to 24th November 2023
Price band ₹ 475 to 500
Minimum Bid quantity 30 & Multiples thereof
Deadline for accepting UPI mandate Until 5 PM on the issue closing day
Finalization of Allotment November 30, 2023
Initiation of Refunds December 1, 2023
Credit of Shares December 4, 2023
Date of Listing December 5, 2023
Mandate end date December 9, 2023
Anchor Investors Lock-In End Date December 24, 2023

How to apply to the Tata Technologies IPO?

You can apply for the Tata Technologies IPO using any supported UPI app by following two steps:

  • Enter your bid on Kite
  • Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status for Tata Technologies IPO?

You can check the allotment status for the Tata Technologies IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.


When this OFS is done, what is the benefit as a shareholder of Tata Motors Ltd the main owner of Tata Technologies. Is it just that the cash will be with Tata Motors and this will strengthen the balance sheet or is there any additional benefit the shareholders of Tata Motors get.

1 Like

Yeah as you’ve rightly pointed out, this move shall help with a) strengthening the balance sheet with more cash and b) if the IPO turns out well, their investment book grows as well.


I have Tata motors shares can I submit two applications one in retail and another in shareholders category for Tata Technologies IPO? And what are the min & max lots i can apply in both categories?


@Adesh_Palav hope this helps. You can apply in both categories


One thing I don’t get it .

  1. TCS - provides solutions in software and Human Resources to automotive companies (such as Tata, M &M, Ford ) in its automotive BU.

  2. Tata Elxis - well known player in automotive software and hardware solutions . They even did an robotaxi demo in their campus in Trichy.

  3. Tata Technologies - same tech ? But with Tata and JLR . But why ??

I don’t get it really . I work in software.

What’s the point of all the three companies in the same work area?

Coming back, should I invest in Tata elxis, TCS or now do Tata Tech ? Or go to KPIT which is also a good leader in the same section of automotive software ?

I’m honestly confused . :man_shrugging::man_facepalming:

If you wish to buy all of them, then buy Tata Investment Corp

This company owns shares of various companies of Tata Group plus others unlisted companies as well.

Disc: Please do your own research as this is a holding company kind of concept. Also they pay out dividends which will be taxed.
As per their financials, TIC owns 1 million shares of TCS and Tata Elxis and 11 million shares of Tata Motors (owner of Tata Technology).

I find this company quite interesting, something similar to a Mutual Fund without the expense ratio.

Page 126 gives details of their portfolio where they have invested.


Great perspective from you ! Thank you for sharing such a different thinking. Thank you for the attachment and your view on this one. I will go through the attachment.

If we want to apply in the shareholder and retail investor category, I understand we can apply for 13 lots in each category.

Does the number of Tata motors share an individual owns affect his chances in shareholder category

If i didn’t have holdings of tata motors or DVR on 13th nov. How can i bid for tata tech ipo ?

You can bid in retail or the two HNI (small and big) categories

In my view, ideally it should affect but practically it makes little sense as HNIs or big investors in Tata motors would gobble up all the eligible shareholder shares in Tata tech and most of the other small shareholders would have to miss out.

So, the answer is no. Irrespective of number of shares, one can apply as allotment will happen on a proportionate basis if the issue is oversubscribed.

Would applying for the max lots in the retail as well as shareholder category improve chances of allocation

It means a share holder can Apply in both categories

share holder quota and

Retail or HNI

So 2 Applications he can do from Same PAN in different categories, please let me know

We can say so. But your overall Return on Investment will be slightly lower naturally. If you’re okay with that, you can allocate max lots for higher probability

That’s correct. You can.

I want to apply for Tata Tech IPO in shareholders category(Holding Tata motors shares). Can i apply in Retail category as well so that I get maximum chance of getting allotted?

Yes, you can.

If I want to apply for the IPO as an existing Tata Motors shareholder, Zerodha/Kite will have an option to do so?

Yes. You will be able to select existing shareholder category


I am TCS employees, am i eligible to apply under Employee category ?

1 Like

No sir. Only Tata Tech employees are eligible for this. If we had an option for all other company employees to apply, the retail category would be mostly empty :smiley:

1 Like