Morgan Stanley and US firms are in negotiations with Tata Technologies for IPO investments

 Morgan Stanley and US firms are in negotiations with Tata Technologies for IPO investments

Tata Technologies is in discussions with Blackrock, Morgan Stanley, as well as U.S. asset managers Ghisallo Capital, Oaktree Capital, and Key Square Capital on potential involvement in the deal ahead of its anticipated $350-375 million initial public offering (IPO).

The organization, which is a part of the conglomerate Tata Group, offers engineering services to businesses, including those in the aerospace and automotive industries.

According to two people with direct information, India's Tata Technologies is in discussions to raise capital for its initial public offering at a value of $2.5 billion with Morgan Stanley Investment Management, Blackrock, and a few US hedge funds.

The organization, which is a part of the conglomerate Tata Group, offers engineering services to businesses, including those in the aerospace and automotive industries. An automaker and steel firm among the several listed companies in the Tata Group, this will be the company's first initial public offering (IPO) in twenty years.

Tata Technologies is in discussions with Blackrock, Morgan Stanley, including U.S. asset managers Ghisallo Capital, Oaktree Capital, and Key Square Capital on potential involvement in the deal ahead of its anticipated $350-375 million initial public offering (IPO).

Tata and the other investors did not reply to requests for comment, and Oaktree refused to comment.

These funds have their eye on Tata's "anchor book," which is where prominent institutional investors get shares before retail and other investors may subscribe. The value and these investor conversations were originally reported by Reuters.

The first source said, "Big investors are quite excited about the Tata brand, particularly a profitable company with scale... that's driving demand."

According to the negotiations, Tata Technologies is now valued at $2.5 billion, which is around 25% more than it was when TPG acquired a 9.9% share in the company during a pre-IPO financing last month.

Subscriptions for the IPO, which is expected to be one of India's largest this year after condom manufacturer Mankind and Blackstone-owned Nexus Malls, will start around November 21, according to both sources. By late November, the business believes, the stock will begin trading.

According to Tata Technologies' draft IPO documents submitted to the regulator in March, the company's profit for the nine months ended December 31, 2022, increased by 23% to 4,074 million rupees ($48.94 million), while its overall revenue increased by 15% to 30.5 billion rupees ($366.37 million).