As per draught papers submitted to the market regulator, Tata Technologies, a unit of Indian automaker Tata Motors, filed for an initial public offering (IPO) on Thursday.

However, Tata Tech, which provides engineering and product development digital services, has stated that it will not sell any of the 95.7 million shares, which represent approximately 23.6 percent of its paid-up share capital, in the IPO.

Tata Motors, which owns 74.69% of Tata Tech, will instead sell up to 81.1 million shares, while Alpha TC Holdings will sell 9.7 million and Tata Capital Growth Fund I will sell 4.9 million.

In the nine months ended Dec. 31, Tata Tech's consolidated profit increased 23% to 4.07 billion rupees ($49.6 million), while revenue increased 15.5% to 30.12 billion rupees, according to the company, which serves the automotive, aerospace, and other industries.

According to Tata Tech, spending on digital services in these industries is expected to rise from $1.64 trillion in 2021 to $2.28-2.33 trillion by 2025, citing a Zinnov Management Consulting report.

Tata Motors announced in December that it was considering a public float of a portion of its stake in Tata Tech.

The issue's booking-running lead managers are JM Financial, Citigroup Global Markets India, and BofA Securities India.