We were incorporated as ‘Core Software Systems Private Limited’ on August 22, 1994 and, subsequently, our name changed to ‘Tata Technologies Limited’ in 2001. In 2005, we expanded through the acquisition of INCAT International plc, a global product solutions and services provider serving the automotive and aerospace industries worldwide. Post-merger integration, we began our capabilities incubation phase, building strategic partnerships with Anchor Clients and expanding to non-Anchor Client accounts. In 2013, we acquired Cambric Corporation, adding Romanian delivery centers to our portfolio and expanding our industrial machinery engineering capabilities. In 2017, we acquired Escenda Engineering AB in Sweden, further expanding our global footprint. During our diversification phase, we have expanded our client base, building processes for onboarding new clients and showcasing our capabilities as a global engineering services provider. • Product Data Management – including implementation of PLM solutions for our clients and also helping them reduce the gap between physical and digital product development (e.g., a Chinese new energy vehicle company) • Smart Manufacturing – helps manufacturing companies adopt Industry 4.0 technologies across their product development value chain and manufacture competitive products while optimizing cost and improving productivity (e.g., a British luxury vehicle company) • Enterprise Resource Planning – including implementation and transformation solutions that are designed to help organizations seamlessly implement, migrate and upgrade to future ready platforms (e.g., a North American new energy vehicle company) • Customer Experience Management – including solutions to manage a client’s entire omnichannel customer journey offering the flexibility of virtual product interaction with the convenience of buying products online, enabled through digital applications and mobile apps (e.g., TML) • Application Management – including services of enterprise application management cutting across PLM-ERP-MES, legacy applications, digital applications and analytics applications (e.g., TML) • Data Intelligence – including implementation of analytics solutions across the manufacturing enterprise. This includes use of AI/ML to solve business problems (e.g., TML) • Process Automation– including optimization of enterprise processes through automation and simplification (e.g., TML). As of December 31, 2022, we had 11,081 employees, of which 10,161 were FTEs and the rest were contracted employees. In the nine-months period ended December 31, 2022 we hired 3,919 employees of which 3,436 were FTEs, our attrition rate was 23.54% and the average tenure of our FTEs was 4.43 years. . As per financial performance, Tata Technologies Limited has posted total income / net profits of Rs 2896.96 Cr / Rs 312.43 Cr (FY20), Rs 2425.73 Cr / Rs 289.31 Cr (FY21) and Rs 3578.38 Cr / Rs 434.03 (FY22) and Rs 3052.29 Cr / Rs 471.99 Cr (9MFY23). So as per last three years data, company has shown average growth. Company has posted an average EPS of Rs 8.38 and average RoNW of 15.57% for last three fiscals. Issue is priced at a P/BV of 6.05 as per NAV of 178.38 as on 31.12.2022. If we attribute latest earnings of FY22 on fully diluted equity post issue, then asking price is at a P/E of around 29.76 and as per annualized FY23 earnings P/E is around 32.12, which looks fully priced. As per RHP, peers comparison is shown in above table . On BRLM's front, 3 lead managers are associated with this IPO, and have handled around 60 IPOs in last three fiscals.JM Financial Limited : This is 36th IPO from this BRLM. From last 10 IPOs, 4 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs, 5 are trading below issue price and remainings are trading above issue price. ( As on 19.04.2023 )Citigroup Global Markets India Private Limited : This is 13th IPO from this BRLM. From last 10 IPOs, 5 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs 6 are trading below issue price and remaining are trading above issue price. ( As on 19.04.23 )BofA Securities India Limited : This is 11th IPO from this BRLM. From last 10 IPOs, 3 opened below issue price and remaining opened above issue price on the day of listing. As of now, from last 10 IPOs 5 are trading below issue price and remaining are trading above issue price. ( As on 19.04.23 ) As per financials, Tata Technologies Limited has shown average growth, RoNW is 15.57% and P/E is respectively 29.76 and 32.12 as per FY22 and annualized FY23 earnings, which looks fully priced. Company is in pharmaceutical business which is highly competitive. Also, there are lot of listed players available. Performance of BRLMs are average. So, we give NEUTRAL rating for this IPO.
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