Tata Autocomp Systems, the auto part maker from the house of Tatas, is likely to launch its initial public offering in two-three weeks. This is first time a Tata group company is coming up with an IPO since Tata Consultancy Service (TCS) got listed in 2004.
Tata Autocomp will raise Rs 750 crore through IPO. Promoters including Tata group, Tata Sons and Tata Motors will later sell another 35 million shares or 17% of the existing equity. "After the IPO, promoters will have well over 60% of the equity," said RS Thakur, managing director & CEO, Tata Autocomp Systems.
He said the company had finished all formalities required for launching an IPO. "Now it is more of a question of when. It might take two- three weeks," he said.The company which makes a dozen auto parts including seats, commercial vehicle suspension systems, mirrors, radiators, control cable and radiators posted a revenue of Rs 2,900 crore and a net profit of Rs 125 crore for the year ending March 31.
Tata Motors accounts for the 50% of its supply while others including Fiat, Force Motors, GM, Volkswagen, Eicher and Ashok Leyland make up for the rest.
The company has a Rs 300 crore capital expenditure plan for the expansion of its 47 units across the country.
"Our target is to double our size by 2015," said Thakur.