Capital markets regulator SEBI (Securities and Exchange Board of India) has approved the IPO (initial public offering) of Tata Technologies, a subsidiary of Tata Motors. This will be the first public issue from the Tata group stable since Tata Consultancy Services (TCS) in July 2004. The market watchdog has also approved non-banking financial company SBFC Finance Ltd and Gandhar Oil Refinery (India) Ltd's IPOs.

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The three companies, which filed their preliminary papers with SEBi between December 2022 and March this year, obtained its observations during June 21-23, an update with the markets watchdog showed today (June 27). Shares of these three companies are proposed to be listed on the BSE and NSE.

In SEBI's parlance, obtaining observations mean its go-ahead to float the initial share sale.

Tata Tech IPO

The Tata Group arm had filed IPO papers with SEBI in March 2023. The much-awaited issue is purely an offer for sale (OFS), where the shareholders will offload up to 9.57 crore equity shares, representing approximately 23.60 percent of its paid-up share capital.

Under the OFS, Tata Technologies' parent company Tata Motors, intends to sell 8.11 crore shares or a 20 percent stake in the firm. Among other shareholders, Alpha TC Holdings Pte plans to offload up to 97.16 lakh shares (2.4 percent) and Tata Capital Growth Fund I would offload up to 48.58 lakh equity shares (1.2 percent).

Tata Motors currently has a 74.69 percent stake in the company, while Alpha TC Holdings Pte has a 7.26 percent stake. Tata Capital Growth Fund I has a 3.63 percent stake in the firm.

The size of the offer is yet to be disclosed but as per market sourcesm, the issue could be worth about Rs 4,000 crore.

Nearly 50 percent of the offer is reserved for qualified institutional buyers (QIBs), 35 percent is reserved for retail investors and the rest 15 percent for non-institutional investors.

Upon listing, Tata Tech will join other 28 listed companies of the conglomerate that commands a combined market capitalisation of Rs 22.23 lakh crore as on Monday's (June 26) closing.

JM Financial Limited, Citigroup Global Markets India Private Limited, and BofA Securities India Limited are the book-running lead managers to the issue.

SBFC Finance IPO

Mumbai-based non-banking lender SBFC Finance is planning to raise Rs 1,200 crore through an initial share sale, which comprises fresh issuance of shares worth Rs 750 crore and an OFS of Rs 450 crore.

The OFS comprises up to Rs 207.75 crore by Arpwood Partners Investment Advisors LLP, Rs 50.99 crore by Arpwood Capital Private Limited, Rs 41.26 crore by Eight45 Services LLP, and Rs 150 crore by SBFC Holdings Pte. Ltd.

About 50 percent of the net offer will be available for allocation to QIBs, 15 percent to NIIs and 35 percent to retail investors. The offer also includes a reservation for subscription by eligible employees.

The proceeds from the fresh issuance worth Rs 750 crore will be used to augment its capital base. The NBFC caters to entrepreneurs, small business owners, self-employed and salaried individuals.

ICICI Securities Limited, Axis Capital Limited, and Kotak Mahindra Capital Company Limited are the book-running lead managers to the issue while KFin Technologies Limited is the registrar.

Gandhar Oil Refinery IPO

The initial share sale of Gandhar Oil Refinery comprises fresh issue of equity shares worth Rs 357 crore and OFS of 1.2 crore shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).

Under the OFS, Rs 500 crore is expected to be raised, according to market sources. Proceeds from the fresh issue component will be used for payment of debt and for purchase of equipment and civil work required for the expansion in capacity of automotive oil at the company’s Silvassa plant.

In addition, the funds will be utilised for expansion in capacity of petroleum jelly and accompanying cosmetic product division at Gandhar’s Taloja plant as well expansion in capacity of white oils by installing blending tanks at the plant and funding working capital requirements.

(Edited by : Shoma Bhattacharjee)

First Published:Jun 27, 2023 6:19 PM IST