If Tata Technologies fascinates you, you need to get this latest update on the Giant's IPO

Tata IPOs have a reputation for rarely disappointing investors and stakeholders; therefore, they always have a particular air about them. The last significant IPO the Tata group released was in 2004 when Tata Sons sold a portion of its investment in TCS (Tata Consultancy Services) to the general public. It appears that the Tata group will launch another significant IPO 18 years later. According to Tata Motors, the board of directors of the company gave preliminary clearance for Tata Technologies' corporate interest to be partially sold off. The future technology engine of the corporation will be Tata Technologies, a multinational provider of product engineering and digital services.

The approval has already been provided, and the next measures won't be taken until after careful consideration. For example, the IPO itself would ultimately depend on the state of the market, the prerequisite approvals, SEBI's observations, regulatory clearances, the timing of the issuance, valuations, etc. In the draught red herring prospectus for the first public offering that will be submitted to SEBI, the business is anticipated to make major announcements relating to the specifics of the issuance. By doing this, Tata Motors will be able to release value for the business and lower its debt levels in the car industry to levels that are more sustainable and acceptable.

The Tata Group is clearly aiming to concentrate solely on the two important commercial sectors of aviation and electric cars. That would entail paying down debt in other companies and putting the money back into the primary firms. The Tata group is planning a number of additional initial public offerings (IPOs), which it will use to monetize its stake in the company. For instance, the IPO of Tata Autocomp Solutions was postponed by the Tata Group, and the Tata Sky Company is also considering going public. Tata Sky actually intends to submit a confidential IPO prospectus, the specifics of which won't be made public until later.

By using this divestiture, Tata Motors intends to reach "zero net automotive debt" status by FY24. The business had even made notice of this in its FY22 annual report to shareholders. The corporation has been losing money for a number of quarters, primarily as a result of the strain that earnings have placed on its global operations. With less debt, the business would be able to utilise the group investments that make up its hidden assets. Tata Motors now has net car debt in FY22 of Rs48,679 crore, plus leases. This has increased significantly from Rs40,876 crore in FY21, and for the group, reducing this debt as soon as possible is a top goal.