India’s Tata Technologies’ IPO to open on Nov. 22

(Corrects stake sale value in paragraph 7 to 9% from 9.9%)

BENGALURU (Reuters) – India’s Tata Technologies’ initial public offering will open for subscription on Nov. 22, its parent Tata Motors said late Monday, in what will be the first Tata Group IPO in nearly two decades.

Tata Technologies, which provides engineering and product development digital services, said its IPO would comprise an offer for sale of 60.9 million shares, representing 15% of its paid-up capital.

That is lower than the 23.6% indicated in its draft prospectus.

Tata Motors will offload an 11.4% stake, while private equity firm Alpha TC Holdings will sell a 2.4% stake, and Tata Capital Growth Fund I will dispose of a 1.2% shareholding.

The IPO closes on Nov. 24.

Reuters last week reported that Tata Technologies is in talks with Morgan Stanley Investment Management, Blackrock and some U.S. hedge funds to invest in its IPO at a valuation of $2.5 billion.

Last month, Tata Motors said it would sell a 9% stake in Tata Technologies to a fund of U.S. private equity firm TPG in a deal that valued the IPO-bound company at nearly $2 billion.

(This story has been corrected to rectify stake sale value to 9% from 9.9% in paragraph 7)

(Reporting by Ashna Teresa Britto in Bengaluru; Editing by Sonia Cheema)