22 November 2023
TTECH’s proposed OFS size is INR 3,043 cr. TML is selling 46,275,000 shares, which will reduce its stake from 64.8% (pre-issue) to 53.4% (post-issue). Other selling shareholders are Alpha TC Holdings Pte Ltd (selling 9,716,853 shares) and Tata Capital Growth Fund I (selling 4,858,425 shares), which will reduce their holdings from 7.3% to 4.9% and 3.6% to 2.4% respectively. With the gradual recovery in the global economy, rising manufacturing capex, and shift in manufacturing from the US/Europe/China to India due to cost inflation and China+1 strategy, we are expecting strong TTECH financial performance in the coming years. At the IPO price of INR 500 (upper price band), TTECH is valued at a TTM P/E of 28.3X. Considering the growth opportunities and strong fundamentals of TTECH, we recommend a SUBSCRIBE rating for this IPO.