TATA TECHNOLOGY IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

About TATA TECHNOLOGY Limited

A leading global engineering services company offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (“OEMs”) and their tier 1 suppliers.

The company helps in developing products that are safer, cleaner and improve the quality of life for end-customers. They are a pure-play manufacturing focused ER&D company, primarily focused on the automotive industry and currently engaged with seven out of the top 10 automotive ER&D spenders. Other clients in adjacent industries, such as in aerospace and transportation and construction heavy machinery (“TCHM”).

The company leverages its deep manufacturing domain knowledge to deliver value-added services to their clients in support of their digital transformation initiatives including product development, manufacturing, and customer experience management.

Primary categories of business as follows:

Services: Includes providing outsourced engineering services and digital transformation services to global manufacturing clients helping them conceive, design, develop and deliver better products. 

Technology Solutions: Products and Education businesses (collectively, “Technology Solutions”). Through Products business company resell third-party software applications, primarily product lifecycle management (“PLM”) software and solutions and provide value-added services such as consulting, implementation, systems integration and support.

On the other hand, Education business provides “phygital” education solutions in manufacturing skills including upskilling and reskilling in relation to the latest engineering and manufacturing technologies to public sector institutions and private institutions and enterprises through curriculum development and competency center offerings through proprietary iGetIT platform.

Competitors:

ER&D service: L&T Technology Services, KPIT Technologies and Tata Elxsi,

IT service: Tata Consulting Services (“TCS”), Wipro and Tech Mahindra

Global engineering, research and development (“ER&D”) spend to be approximately $1.81 trillion as of 2022 and expects it to grow to approximately $2.67 trillion by 2026. The ER&D spend outsourced to third-party service providers reached $105 billion to $110 billion in 2022 and is anticipated to grow at a 11-13% compound annual growth rate (“CAGR”) between 2022 and 2026.

Key growth drivers: Increasing propensity to outsource services (following the COVID-19 pandemic), increased regulatory interventions for safer and cleaner products, shrinking product innovation cycles and next-generation product technologies that underpin autonomous, connected, electrification and shared (“ACES”) technologies.

Risk Analysis.

  1. Tata Motors Limited, Jaguar Land Rover Limited and their subsidiaries hold about 75% of its revenue. These revenues are highly concentrated in the automotive segment, also approximately 75% of revenue is concentrated to 3 countries India, Europe, and North America.
  2. The company expects a significant amount of future revenue to come from new energy vehicle companies, many of whom may be startup companies. Uncertainties in funding plans, future product roadmaps, ability to manage growth, creditworthiness and ownership changes may adversely affect tata Technologies’ business, financial condition, and results of operations.
  3. The company invests in unsecured debt instruments, from time to time, which may carry interest rates lower than the market rate. Sometimes the company also incurs exchange rates risks.
  4. The company is subject to laws, rules and regulations related to system failures, disclosure of confidential information or data security breaches that are frequently evolving and may require additional expenses.
  5. Certain Group Companies operate in a similar line of business, which may lead to competition with these entities and could potentially result in a loss of business opportunity for this Company.
  6. The company has recently entered the education business, therefore might take time to grow. Apart from this, the company also needs to innovate and upgrade and adapt our services and solutions to evolving clients.
  7. For Products business they rely on vendors and partners for software, many of which are single-source or limited source suppliers.
  8. clients may terminate contracts before completion, negotiate adverse terms of the contract or choose not to renew contracts, which could materially adversely affect.
  9. The company rely on licensing arrangements with Tata Sons Private Limited to use the “Tata” brand.
  10. The company is subject to laws and regulations in the United States and other countries in which they operate concerning operations, including export restrictions, U.S. economic sanctions, the Foreign Corrupt Practices Act, and similar anti-bribery laws.

Services

The Process of Filing the Income Tax Return Online in India

1. Aadhaar and PAN Card of the taxpayer and the company

2. Bank Statements of the taxpayer/company/firm

3.Form 26AS: It is a summary of all the taxes that have been deducted from your income, such as TDS (Tax Deducted at Source).

4. Form 16: It is issued by your employer, which gives the details about the total salary + TDS deducted from it.

5. Investment and financial documents: If you have invested in shares, mutual funds, or fixed deposits, dividend statements, capital gains reports (if you have sold any assets), and interest certificates need to be attached.

6. Proof of other income: Other than your salary, if you have earned from different sources, such as from freelance work, rental income, or interest, you need to attach the documents, such as bonus receipts, interest certificates, rental agreements, and any freelance payment statements, to prove the same.

7. Deductions and tax-saving investments: To claim deductions under sections 80C - for investments in PPF, ELSS, etc., 80D - for insurance premiums, or 80G for the charitable donations, you need to attach the documents to prove the same.

8. Form 10E (If Applicable): If you have received salary arrears or any special bonuses, then you need to attach the Form 10E - it is used to claim tax relief for those payments under section 89(1) of the Income Tax Act, 1961.

9. TDS Certificates: If you have earned income from sources other than your salary, such as rent, interest, or professional fees, then your TDS might have TDS deducted. In this case, you need to attach the TDS certificates from those sources to show that tax has been deducted and deposited with the government.

10. Details of Foreign Income (If Applicable): If you have earned from abroad or own foreign assets, you need to disclose all the information in your ITR. Documents such as foreign bank statements, income certificates, or details of foreign investment are necessary to report this income correctly.

Services

The Process of Filing the Income Tax Return Online in India

1. Aadhaar and PAN Card of the taxpayer and the company

2. Bank Statements of the taxpayer/company/firm

3.Form 26AS: It is a summary of all the taxes that have been deducted from your income, such as TDS (Tax Deducted at Source).

4. Form 16: It is issued by your employer, which gives the details about the total salary + TDS deducted from it.

5. Investment and financial documents: If you have invested in shares, mutual funds, or fixed deposits, dividend statements, capital gains reports (if you have sold any assets), and interest certificates need to be attached.

6. Proof of other income: Other than your salary, if you have earned from different sources, such as from freelance work, rental income, or interest, you need to attach the documents, such as bonus receipts, interest certificates, rental agreements, and any freelance payment statements, to prove the same.

7. Deductions and tax-saving investments: To claim deductions under sections 80C - for investments in PPF, ELSS, etc., 80D - for insurance premiums, or 80G for the charitable donations, you need to attach the documents to prove the same.

8. Form 10E (If Applicable): If you have received salary arrears or any special bonuses, then you need to attach the Form 10E - it is used to claim tax relief for those payments under section 89(1) of the Income Tax Act, 1961.

9. TDS Certificates: If you have earned income from sources other than your salary, such as rent, interest, or professional fees, then your TDS might have TDS deducted. In this case, you need to attach the TDS certificates from those sources to show that tax has been deducted and deposited with the government.

10. Details of Foreign Income (If Applicable): If you have earned from abroad or own foreign assets, you need to disclose all the information in your ITR. Documents such as foreign bank statements, income certificates, or details of foreign investment are necessary to report this income correctly.

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