Tata Technologies is discussing potential investments in its IPO with Morgan Stanley Investment Management, BlackRock, and U.S hedge funds, aiming for a valuation of $2.5 billion.
Tata Technology is discussing with Morgan Stanley Investment Management for an investment in its IPO, with a valuation of $2.5 billion.
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Tata Technologies is in talks with Morgan Stanley Investment Management, Blackrock, and some US hedge funds for its initial public offering (IPO) at a $2.5 billion valuation, according to Reuters sources. This IPO would be the first in two decades for a Tata Group company. Tata Technology offers engineering services, especially in the auto and aerospace sectors.
Before its planned $350-375 million IPO, Tata Tech is engaging with US asset managers Ghisallo Capital, Oaktree Capital, and Key Square Capital, as well as Blackrock and Morgan Stanley for potential participation in the deal, as reported by the news agency. However, there has been no official confirmation from the prospective investors. Oaktree declined to comment, and queries to Tata and other investors remained unanswered.
Morgan Stanley and Blackrock, along with US hedge funds, are interested in Tata’s anchor book investment, where high-profile institutional investors are allocated shares before the subscription opens for retail and other investors. “Big investors are quite excited by the Tata brand, and a profitable company with scale, that’s driving demand,” stated the first source to Reuters’ M. Sriram.
The ongoing deal negotiations value Tata Technologies at $2.5 billion, a 25% increase from last month when TPG acquired a 9.9% stake in pre-IPO fundraising.
The IPO for Tata Technologies is expected to open for subscriptions around November 21, according to Reuters sources. Investors and market experts view this IPO optimistically, anticipating it to be one of India’s largest IPOs this year, following Mankind and Blackstone-owned Nexus Malls. The company aims to make its trading debut by late November.
As of December 31, 2022, Tata Technologies reported a 23% increase in profit to 4,074 million rupees and a 15% rise in total income to 30.5 billion rupees for the nine-month duration, as per its draft paper submitted in March.
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