Tata Motors on Monday said that the company’s board has given an in-principal approval for partial disinvestment in its subsidiary Tata Technologies through an initial public offering (IPO). The company’s board voted to look into partial disinvestment of its investment in Tata Technologies, a multinational provider of product engineering and digital services, during the meeting on Monday.

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Further the company will make more announcements of all other developments relating to IPO, as and when required. As of March 31, 2022 Tata Motors holds 72.48 percent stake in Tata Technologies.

As per Tata Motors annual report for 2021-2022, its investment in Tata Technologies stood at Rs 224.10 crore.

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This will also be the first IPO by a Tata group entity in 18 years. Since Tata Consultancy Services in 2004, no company from the Tata Group has made a debut on the domestic bourses in the past 18 years.

In FY22, Tata Tech’s revenue stood at Rs 3539 crore while the profit-after-tax was at Rs 436.9 crore. In FY22 the revenue growth was strongest ever climbing 46 percent from the corresponding period a year ago.

"The increase in revenue of Tata Technologies is due to due to relaxation in regulatory and health guidelines that enabled improved business activities coupled with new business opportunities in South East Asia. Revenues from other operations represented 1.4 percent and 1 percent of our total revenues, before inter-segment eliminations, in FY 2021-22 and FY 2020-21, respectively," the annual report added.

The company has over 9,300 plus employees and is headquartered in Pune, India. It also has five offices located at Mumbai, Lucknow, Jamshedpur, Bangalore and one branch office located in Japan that enables it to provide high quality, cost-effective services to clients

Tata Tech’s range of services includes IT Consultancy, SAP implementation and maintenance, providing networking solutions, CAD/CAM engineering & design consultancy.

For the July-September quarter the world's largest automaker Tata Motors recorded a net loss of Rs. 944.61 crore. In the same period a year the company reported net losses of Rs 4,441.57 crore and in the first quarter of financial year 2023 the net loss stood at Rs 5,006.60 crore.

In comparison to the corresponding period a year ago, the consolidated revenue increased by 29.7 percent to Rs 79,611.37 crore from Rs 61,378.82 crore.

Also read: Tata Motors board gives approval for partial divestment of Tata Technologies through IPO