Tata Group, controlled by N Chandrasekaran, is all set for an additional Initial Public Offer (IPO). As per reports, the group has ongoing the procedure to list Tata Technologies by IPO. The Tata Motors subordinate is also supposedly working to raise money for estimation for this Tata Tech IPO.

According to Economic Times, the Tata Motors subsidiary is occupied with two advisors to aid raise Rs 3,500 crore to Rs 4,000 crore. With this, the uncertain valuation for the Tata Tech IPO that the company is directing is set at around Rs 16,200 crore to Rs 20,000 crore.

Before this, the Tata Motors board also permitted a fractional divestment of its picket in Tata Tech via a public float, per the media report. It adds that at that time, the company mentioned in the exchange filing that the IPO would derive “at an opportune time, focus to market circumstances, pertinent approvals, regulatory clearances.”

For Tata Motors, the strategy would be customizing this divestment to get to “zero net locomotive debt” by FY24. This was roughly what the company had even declared in its FY22 annual report to stockholders. The company has been making fatalities for quite a few quarters, mainly amid the pressure of profits on its international procedures.

The lower debt would empower the company to use its concealed assets industriously through group investments. Tata Motors has a net auto liability, counting tenancies, of Rs 48,679 crore in FY22. This has risen sharply from Rs40,876 crores in FY21, and the priority for the group is to cut down this debt soon as earliest.