Tata Technologies, a subsidiary of Tata Motors, has filed draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO).

This will be the second IPO from the $128 billion conglomerate in 19 years. The last IPO was that of Tata Consultancy Services (TCS) which was listed on August 25, 2004.

The Tata Technologies IPO is purely an offer for sale (OFS), where the selling shareholders will offload up to 9.57 crore equity shares representing around 23.60 per cent of its paid-up share capital, according to the Draft Red Herring Prospectus (DRHP).

Under the OFS, Tata Technologies’ parent company Tata Motors will sell 8.11 crore shares, or a 20 per cent stake, in the company. Among other shareholders, Alpha TC Holdings Pte plans to hawk up to 97.16 lakh shares (2.40 per cent) and Tata Capital Growth Fund I would offload up to 48.58 lakh equity shares (1.20 per cent).

Tata Technologies is a global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (OEMs).

For the nine months ended December 2022, the firm reported revenue from operations of Rs 3,011.79 crore against Rs 2,607.30 crore for the nine months ended December 2021.

According to the DRHP, the company has deep domain expertise in the automotive industry, and it leverages this expertise to serve its clients in adjacent industries such as aerospace, transportation and construction heavy machinery