Tata Technologies IPO: Should you invest?

We have issued an updated call (SELL) on this stock on November 30. 2023.Please click here for the update.

The Tata Technologies IPO is the second IPO in a span of almost 2 decades (18 years after the TCS IPO) from the Tata group. The IPO of Tata Technologies is a full offer for sale totalling ~Rs.3,040 crore, comprising ~ 6 crore shares at a price band of Rs.475-500 per share of face value Rs.2/-. The offer closes on November 24, 2023.

Tata Motors is selling 4.62 crore shares along with other private equity players, including group entity Tata Capital. After the IPO, Tata Motors will hold ~53% of the post issue share capital. At the higher end of the IPO price band, Tata Technologies is valued at Rs.20,280 crore

We recommend an ‘invest’ on this IPO, suitable only for long-term investors. We do not factor in any IPO listing gains. If the stock manages to list at a significant premium to its present valuation, we may consider issuing a book profit.

About the Company and Business

Tata Technologies (Tata Tech) is a full-service player in Automotive Engineering Research & Development (ER&D) space offering product development and digital solutions, including turnkey solutions, to global original equipment manufacturers (“OEMs”) and their tier 1 suppliers. It derives nearly a third of its revenues from India and a fourth from Europe and remaining from North America and Rest of the World. Apart from Automotive, Aerospace and Transportation are two adjacent and focus verticals for Tata Tech.

The ER&D services business is complemented by its Products and Education businesses that sells third-party software applications (product lifecycle management software) and provide value-added services such as consulting, implementation, systems integration and support and forms a fifth of its revenue. 

Tata Tech services its clients using its global sales and delivery network comprising 19 global delivery centers in Europe, North America and Asia Pacific with ~1,434 employees in Europe, ~336 employees in North America, ~219 employees in Asia Pacific, excluding India, ~10,462 employees in India. Tata Tech counts Tata Motors including its UK Subsidiary JLR as its anchor client and Vietnam born VinFast, that made Nasdaq debut in 2023, as its key new energy (EV) client.

Industry

Global ER&D spend was estimated at nearly $2 trillion in 2023 and is expected to touch $2.7 trillion in 2026, growing at a CAGR of 10%. Manufacturing-led verticals have been the largest contributors, and account for half of the global ER&D spending. The automotive sector is the largest manufacturing ER&D vertical, and the second largest ER&D vertical overall, accounting for approximately 10% of global ER&D spends. Automotive ER&D spend currently stands at $180 billion and is estimated to grow at approximately 7% CAGR between 2022-2026. The automotive outsourced ER&D market is pegged at $18-20 billion and is expected to grow at a faster rate than overall automotive ER&D spending during the period 2022-2026. 

With increasing adoption of digitalization and requirements for technology enabled skills in the automotive industry, a lack of skilled workforce is expected to drive the outsourcing opportunity to plug the growing skills gap. Further, with an increased regulatory focus on sustainability and changing consumer preferences, electrification is expected to be the primary focus for the automotive industry. New technologies are disrupting the automotive sector with increased ER&D complexity, requiring specialized support in areas such as ‘ACES’ technologies – autonomous, connected, electrification and shared.

Tata Technologies IPO – Positives

#1 Leader in whole service automotive ER&D space

Tata Tech’s automotive ER&D services span the entire automotive value-chain and includes concept design and styling, tear down and benchmarking (“TDBM”), vehicle architecture, body engineering, chassis engineering, virtual validation, e-Powertrain, electrical and electronics, connected, manufacturing engineering, test and validation and vehicle launch. It is positioned in the “leadership zone” by Zinnov Zones for ER&D services ratings in 2023 for the seventh consecutive year and ranked first among all India-based ER&D service providers and are among the top two globally, in electrification. In addition to the spectrum of discrete service offerings, it offers turnkey full vehicle development solutions for traditional internal combustion engine (“ICE”) vehicles, plug-in hybrids (“PHEV”) and EVs. 

The thought process that “technology is the heart” of vehicle in the upcoming era is making ER&D players a strategic partner in vehicle development as evidenced by the induction of a domestic ER&D service provider as a strategic partner by Renault and Honda recently. While Tata Tech may not as strong as some its competitors in digital technologies, it can leverage the expertise of Group Co. Tata Elxsi when it comes to turnkey projects and has been doing so. 

Its Integration of Product lifecycle management (“PLM”), Manufacturing execution systems (“MES”), and Enterprise resource planning (“ERP”) solutions, which are the fundamental aspects of a digital thread likely provides some strength although this does not make up for areas where peers dominate. The company has built proprietary platforms and accelerators to integrate these key three aspects. This stands as a differentiator for the company.

Tata Tech counts China’s Nio and Vietnam born VinFast as its key customers among new-age OEMs while it has worked with Volvo owned Polestar as well. Needless to say, some of its learnings have come inhouse from Tata Motors. It is also reported to have worked with some of the top EV makers in the US. 

#2 Tapping the outsourcing opportunity in automotive ER&D

The automotive outsourced ER&D market is pegged at $18-20 billion in 2022 and is expected to grow at a faster rate of 11% than overall automotive ER&D spending growth rate of 7% during the period 2022-26. With the increasing adoption of digitalization and high requirements for technology enabled skills in the automotive industry, a lack of skilled workforce is expected to drive the outsourcing opportunity to plug the growing skills gap. The challenge is that most of traditional skill set is ICE based, and the shift towards EVs has resulted in European automakers struggling to hire talent. India has emerged as a favorable destination for outsourced ER&D spend by global enterprises due to its large talent pool, innovation ecosystem, affordable costs, maturing in-house R&D centers landscape and geopolitical support. 

The chart below sets out outsourced ER&D market spend across categories for 2022.

Due to increased regulatory focus on sustainability and changing consumer preferences, electrification is expected to be the primary focus for the automotive industry. New technologies are disrupting the automotive sector with increased ER&D complexity, requiring specialized support in ‘ACES’ technologies – autonomous, connected, electrification and shared. This has also propelled many new-age OEMs (for example – Canoo, Fisker, Li Auto, Nikola, NIO and Rivian) to outsource work to ER&D service providers for new products as they focus on reducing product development time and cost. Tata Tech is already engaged with 7 out of the top 10 automotive ER&D spenders and 5 out of the 10 prominent new energy ER&D spenders.

The ability to offer whole range of automotive ER&D services, including turnkey projects, differentiates Tata Tech from other domestic ER&D companies such as Tata Elxsi, KPIT and LTTS that are predominantly focused on digital technologies (explained in detail later) and puts it at an advantage when it comes to new-age OEMs.

Aerospace is another promising vertical next to automotive that offers significant outsourcing opportunity and Tata Tech seems to be making some inroads in this. It has been empaneled by Airbus already. Meanwhile the company is also adopting territory specific strategies, such as the EV proposition for China, aerospace proposition for France and embedded solutions for Germany to augment its growth prospects in ER&D outsourcing.

Concerns

Client concentration, industry evolution and competition

Having discussed about the capabilities and the opportunity, Tata Tech is a bit in the middle of its journey with anchor client (Tata Motors along with JLR) contributing to a chunk of its revenue (~40% in last 3 years) along with VinFast also contributing a big chunk from the new-age OEMs. Top 5 clients contributed to 65-70% of revenue in last 3 years. Client concentration along with lumpiness of revenue from turnkey projects could make the earnings picture more volatile unless supported by new client additions. With Tata Motors’ share of revenue decreasing over the years, we hope that new client addition will help diversify.

Meanwhile, a substantial portion of automotive ER&D spend is concentrated among the top 20 companies, accounting for 73% of overall spend. The German Trios (VW, Merc, BMW), Renault, Valeo, Stellantis, Toyota, Honda, Nissan, Ford, GM, BYD, Nio and Tesla make up for most of those Top 20 and is well understood by their market dominance. If we go by the market trends in the last few years, it looks like top OEMs still want to keep their dominance over core vehicle development while inducting ER&D players as a strategic partner in the vehicle development process. For example, KPIT has been inducted as strategic partner by Renault and Honda recently. 

But it is more likely that new-age OEMs (than the traditional OEMs) find Tata Tech a more worthy partner of choice. High cost of in-house ER&D, together with less time to invent and market (given the competition intensity) all point to this likely choice. 

It needs to be seen whether Tata Tech will be able to bring down dependence on its anchor clients, in this backdrop. The success journey and market share gains by new-age OEMs will be critical in driving the future growth prospects of Tata Tech along with the continuing success journey of its anchor client, Tata Motors. The fact that Tata Tech is also not a strong player in digital technologies may keep it away from the opportunities that its Group Co. Tata Elxsi and other domestic ER&D players such as KPIT and LTTS are able to tap into. The digital technologies space is also growing at a much higher CAGR than the overall ER&D spend growth.

Financials and Peer Comparison

Tata Tech had a good run-in terms of earnings growth in the last 3 years, in line with other industry players, with increasing share of fixed-price contracts aiding margin expansion. The share of fixed price contract has increased from ~40% in FY21 to ~60% in FY23 and was at 58% in H1FY24. Tata Tech also has a reasonably healthy mix of on-shore: off-shore at 49:51. Though lower than some of its peers, this can act as a margin lever if improved further.

Here’s a comparison on key financial parameters on Tata Tech Vs its peers.

A strict comparison could not be made since most of its peers are diversified and focused towards digital technologies. Further, service offerings, contract mix and delivery models also create differences in margin profile. At this point of time, Tata Tech cannot not be expected to gain higher valuations than the traded tech peers for both business and financial reasons.

Verdict

The IPO is offered at 32.5 times and 29 times its FY23 earnings and FY24 earnings (annualised) respectively. This compares with 60-90 times TTM earnings for automotive focused players such as KPIT and Tata Elxsi while at a reasonable discount to diversified ER&D player LTTS (37 times).

But cheaper valuations don’t undermine the risks related to lumpiness of revenue and cash flows arising from turnkey projects and from client concentration. The journey to a more broad-based player with reduced client concentration and augmented capabilities in digital technologies may be key to sustaining these valuations post IPO and provide returns in the long run. 

Long term investors can use the IPO as an entry point to Tata Tech. This company is best viewed at this juncture as a higher-end proxy play on the automotive industry and less compared with IT. To this extent, it is bound by the cyclicality of the auto business. Return expectations have to be tempered to factor this in.

You may also look at it as an indirect play on Tata Motors’ EV business as well with relatively lesser risk as compared to Tata Motors itself. 

Update call dated Nov 30, 2023: Sell Tata Technologies if you got IPO allotment

Tata Technologies has made a stellar and surprising debut in stock exchanges with a 170% gain over the listing price. 

This listing has straightway made it the second most expensive stock, at 76 times earnings, in the whole ER&D space behind KPIT. This valuation is at a significant premium to its prospects, especially given the risks we have mentioned in our IPO call. 

If you were lucky to get an allotment, you can consider pocketing the gains. One can also take cues from the listing of Sona BLW two years ago and the subsequent price action. In the last 18 months, it was one of the very few stocks from the auto space to deliver negative returns when the sector was going through a bull run.

We will continue to keep track of the company and reissue a call if valuations afford any opportunities.

General Disclosures & Disclaimers

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12 thoughts on “Tata Technologies IPO: Should you invest?”

  1. How is TTL comparable to say Tata Elixi which seems to be a higher PE. Does this mean Elixi price will come down as TTL is bigger than Elixi in terms of revenues

    1. N V Chandrachoodamani

      Welcome your query sir,

      As mentioned in the IPO report, players like Tata Elxsi & KPIT work solely on software/digital tech side.
      They are also emerging as preferred partners for OEMs looking to EV transition & autonomous vehicles. Just check these two sites on how legacy OEMs are planning for future
      https://www.ampere.cars/en/
      https://www.shm-afeela.com/

      Tata Tech currently takes more of turnkey projects which includes using capabilities of Tata Elxsi on software side. This apart client concentration issue is also there at this point of time. These can lead to earnings volatility

      The good thing about IPO is that it has taken it into account of these factors in the IPO pricing. That also explains lower PE for Tata Tech

      Tata Elxsi’s PE can come down only if it’s growth falls and not due to Tata Tech’s listing or that of Tata Tech’s lower valuation

      Hope this clarifies

      Thank you

  2. Who are the technology partners for existing market leaders in Automobiles such as Maruti , Hyundai , Eicher ? Or is it still in-house and not separately disclosed ?

    1. N V Chandrachoodamani

      Welcome your query sir,

      A big shift is now happening in passenger cars than CV with the vehicle architecture itself undergoing a big change.
      So, a it is vehicle manufacturer, software Co and vendors with a software Co assuming a bigger role in vehicle design.

      It is R&D stage now for most Cos in this transition. Kindly look at these two sites for further insights on future direction
      https://www.shm-afeela.com/en/
      https://www.ampere.cars/en/

      For Maruti and Hyundai much of the collaboration and R&D may be happening at parent level, not heard anything so far.
      Same for Eicher as it is now using more of Volvo technology.

      Hope this clarifies.

      Thank you

    1. N V Chandrachoodamani

      Welcome your query sir,

      In the offer doc, they have only mentioned Tata Motors Ltd (TML) shareholders.
      Since DVR carry only 1/10th voting right, I doubt if DVR holders can bid in the quota.

      Thank you

      1. Tavinder Singh Saran

        I am holding TataMotors DVR shares & on the eve of this IPO subscription Tata Motors have themselves sent out an email communication to me sharing IPO details & the various bid options (/shareholder category / retail investor / HNI etc.) . Wouldn’t that indicate that DVR shareholders bid will be considered valid under shareholder category??

        1. N V Chandrachoodamani

          Welcome your query sir,

          DVR has 1/10 voting rights as that of ordinary shares. Didn’t find any mention in RHP as to the available quota for DVR shareholders.

          Kindly check in IPO window during application. It may reflect there once you feed your demat ID

          Thank you

          1. Tavinder Singh Saran

            Thank you for the update.
            Just wondering, why do registerar of such high profile entities keep such important matters fuzzy in RHP? Something for SEBI to look into, as investors benefits are at stake, isn’t it?

  3. Thanks for the detailed analysis. Really helpful. One related query- Tata Motors share price had a significant run up leading in to this IPO. Does it make sense to hold on to this scrip? Will be nice to have your views.
    Thanks & Good day..

    1. N V Chandrachoodamani

      Welcome your query sir,

      It is natural for parent Co shares to rally ahead of their subsidiary IPOs

      In general, Tata Motors has been a challenging Co to research and forecast numbers due to its volatile overseas business (JLR).
      So, we haven’t recommended the stock at any point of time and so we don’t have an opinion on it.

      We had it in our Auto++ smallcase, which we exited after a good run up for reason mentioned above.

      Thank you

Comments are closed.

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Details on grievances are available on the Website as follows: https://primeinvestor.in/ra-grievance/

10. Additional clauses:

Scope of the Research Service: The Research Services will be limited to providing independent research recommendation and shall not be involved in any advisory or portfolio allocation services. The Research Services are not meant to be tailor-made or customized solutions that specifically apply to each client based on his/her risk profile.

The RA never guarantees the returns on the recommendation provided. Investor shall take note that investment/trading in stocks/Index or other securities is always subject to market risk. Past performance is never a guarantee of same future results. The RA shall not be responsible for any loss to the Investors.

This service is not directed for access or use by anyone in a country, especially the USA, Canada or the European Union countries, where such use or access is unlawful or which may subject PrimeInvestor Financial Research Pvt Ltd or its affiliates to any registration or licensing requirement.

The Research Service, including recommendations, research reports, updates, and other information will be accessible through the RA’s website https://primeinvestor.in only. Such recommendations and updates will not be provided over phone calls.

Fees: Our current fee structure, the term and duration of our subscription for our Research Service, can be viewed on our website: https://primeinvestor.in/prime-pricing. Eligibility for any discounts is ascertained at the time the client subscribes. Any such discount and its tenure shall be at the discretion of the RA.

Subscription and access to content services fall under the purview of Goods and Services Tax (GST) as per the current indirect taxation policy, Government of India. Unless otherwise indicated, prices stated on our website are exclusive of applicable GST, any applicable value added tax (VAT) or other sales taxes. We are a business-to-consumer (B2C) service provider and we do not commit to provide any input tax credit on GST charged on subscription to our Research Service.

We may change the Subscription Fees and charges then in effect, or add new fees or charges which will take effect at the end of the client’s subscription period, by giving notice in advance and an opportunity to cancel renewal of the subscription.

Subscription Access & Renewal: Subscription to the Website commences immediately on the realisation of payment of the Subscription Fees. Subscriptions are set to be renewed automatically at the end of the subscription period.

Unless the client notifies us before the end of his/her subscription period, or the client cancels the auto-renewal mandate within the period specified by law, that the client does not wish to renew his/her subscription, the client’s subscription will renew for the period defined by the client’s subscription plan. We will charge the subscription using the same payment method that you previously used.

Although the client may notify to us his/her intention to his/her subscription, such notice will only take effect at the end of his/her then current subscription period, and he/she will not receive a refund other than as set out under Clause 8 in these Terms.

The client may notify us of his/her wish to cancel his/her subscription by sending an email to [email protected]. The client must provide at least 5 business days advance notice for this to be implemented.

Refunds: There can be no cancellation and refund of subscription fee paid once the subscription is active, other than as stated in Clause 8 of these Terms. If the client is entitled to a refund as specified under Clause 8 of these Terms, the RA will credit that refund to the card or other payment method used by the client to submit payment, unless it has expired - in which case the RA will contact the client to proceed with the refund. If we do issue a refund or credit due to circumstances outside the obligations specified under Clause 8, we are under no obligation to issue the same or a similar refund in the future.

General disclaimers: The recommendations made herein in the Research Services are expression of views and/or opinions and should not be deemed or construed to be advice for the purpose of purchase or sale of any security, nor a solicitation or offering on any investment/ trading opportunity on behalf of the company, AMC, insurance company, or issuer of security referred to herein.

The content and research reports generated by the RA does not constitute or is not intended to constitute an offer to buy or sell, or a solicitation to an offer to buy or sell financial products, units or securities.

The information/ opinion/ views mentioned in research reports or by the RA are not meant to serve as a professional guide to the client or recipients of this Report. The research report, recommendation, or any other content published by the RA do not assure or guarantee any minimum or fixed returns to the client or recipients of the reports/ recommendations/ content.

Use of this information is at the client’s own risk. The client must make his/ her own investment decisions based on his/her specific investment objective and financial position and using such independent advisors as he/she believes necessary. The services rendered by the RA are on a best-effort basis. All information in the content or research report of the RA is provided on an as is basis. Information is believed to be reliable but the RA does not warrant its completeness or accuracy and expressly disclaim all warranties and conditions of any kind, whether express or implied.

While due care has been taken to ensure that the disclosures, information, and opinions given are fair and reasonable, PrimeInvestor Financial Research Pvt Ltd and/or none of its officers, directors, partners, employees, agents, subsidiaries, affiliates or business associates shall be liable for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including lost profits arising in any way whatsoever from the information/ opinions/ views contained in the research report and recommendations that form part of the Research Service, and/or mails, social media or notifications issued by PrimeInvestor Financial Research Pvt Ltd or any other agency appointed/authorised by PrimeInvestor Financial Research Pvt Ltd. Returns and performance figures mentioned in the research report represent past performance and should not be constituted to be future returns or guaranteed returns.

Any agreements, transactions or other arrangements made between the client and any third party named on (or linked to from) the Website are at your own responsibility and entered into at your own risk. Any information that you receive via the Website, whether or not it is classified as “real time”, may have stopped being current by the time it reaches you. Market price information may be rounded up/down and therefore may not be entirely accurate.

The purpose of these disclosures is to provide essential information about the Research Services in a manner to assist and enable the prospective client/client in making an informed decision for engaging in Research Services before onboarding.

History, present business and background: PrimeInvestor Financial Research Private Limited is registered with SEBI as Research Analyst with registration no. INH200008653. The Research Analyst got its registration on August 19, 2021 and is engaged in offering research and recommendation services.

Disciplinary history: There are no pending material litigations or legal proceedings against the Research Analyst. As on date, no penalties / directions have been issued by SEBI under the SEBI Act or Regulations made thereunder against the Research Analyst relating to Research Analyst services.

Details of the RA's associates: No associates.

Usage of Website Content: This Website is controlled and operated by the RA. All material, including research reports, recommendations, portfolios, ratings, lists of financial products, illustrations, statements, opinions, views, photographs, products, images, artwork, designs, text, graphics, logos, button icons, images, audio and video clips and software (collectively, “Content”) are protected by copyrights, trademarks and other intellectual property rights that are owned and controlled by the RA or by other parties that have licensed their material to us.

Except where otherwise agreed in writing with the RA, material on the Website is solely for the client’s personal, non-commercial use. Except as provided below, the client must not copy, reproduce, republish, upload, post, transmit or distribute such material in any way, including by e-mail or other electronic means and whether directly or indirectly and the client must not assist any other person to do so.

Without the prior written consent of the RA, modification of the materials, use of the materials on any other web site or networked computer environment or use of the materials for any purpose other than personal, non-commercial use is a violation of the copyrights, trademarks and other proprietary rights, and is prohibited. Any use for which the client receives any remuneration, whether in money or otherwise, is a commercial use for the purposes of these Terms.

The client may occasionally distribute a copy of a research report, or a portion of the same, from the Website in non-electronic form to a few individuals without charge, provided the client includes all copyright and other proprietary rights notices in the same form in which the notices appear, original source attribution, and the phrase “Used with permission from PrimeInvestor Financial Research Pvt. Ltd.”

While the client may occasionally download and store research reports or information from the Website for his/her personal use, he/she may not otherwise provide others with access to the same. The foregoing does not apply to any sharing functionality we provide through the Website that expressly allows the client to share Content or links to Content with others. In addition, the client may not use Content he/she has downloaded for personal use to develop or operate an automated trading system or for data or text mining.

The client agrees not to rearrange or modify the Content available through the Website. The client agrees not to display, post, frame, or scrape the Content for use on another website, app, blog, product or service, except as otherwise expressly permitted by these Terms. You agree not to create any derivative work based on or containing the research products and Content. The framing or scraping of or in-line linking to the Services or any Content contained thereon and/or the use of webcrawler, spidering or other automated means to access, copy, index, process and/or store any Content made available on or through the Services other than as expressly authorized by us is prohibited.

The client further agrees to abide by exclusionary protocols (e.g., Robots.txt, Automated Content Access Protocol (ACAP), etc.) that may be used in connection with the Research Services. The client may not access parts of the Research Services to which he/she is not authorized, or attempt to circumvent any restrictions imposed on your use or access of the Services.

As a general rule, the client may not use the Content, including without limitation, any Content made available through one of our RSS Feeds, in any commercial product or service, without our express written consent.

The client may not create apps, extensions, or other products and services that use our Content without our permission. The client may not aggregate or otherwise use our Content in a manner that could reasonably serve as a substitute for a subscription to the Website.

The client may not access or view the Services with the use of any scripts, extensions, or programs that alter the way the Services are displayed, rendered, or transmitted to you without our written consent.

The client agrees not to use the Services for any unlawful purpose. We reserve the right to terminate or restrict the client's access to the Website if, in our opinion, the client's use of the Services may violate any laws, regulations or rulings, infringe upon another person's rights or violate these Terms.

Prohibited content: The Website includes comments sections, blogs and other interactive features that allow interaction among clients and between clients and the RA. We call the information posted by or contributed by users “Contributed Content.” In the course of availing of the Research Services or uploading any post or comment on the Website, the client shall not post any Contributed Content that (i) contains nude, semi-nude, sexually suggestive photos, (ii) tends or is likely to abuse, harass, threaten, impersonate or intimidate other users of the Website and/or Research Services, (iii) is lascivious or appeals to the prurient interest or if its effect is such as to tend to deprave and corrupt persons who are likely to use or have access to the Website and/or Services, or (iv) otherwise violates, is prohibited or restricted by applicable law, rule or regulation, is offensive or illegal or violates the rights of, harms or threatens the safety of other users of the Website and/or Services (collectively “Prohibited Content”).

We reserve the right to cease to provide the client with the Research Services or access to the Website, or terminate your subscription, with immediate effect and without notice and liability, for violating these Terms, applicable law, rules or regulations and reserves the right to remove Prohibited Content which is in violation of these Terms, or is otherwise abusive, illegal or disruptive. The determination of whether any content constitutes Prohibited Content, violates these Terms, or is otherwise abusive illegal or disruptive, is subject to the sole determination of the Firm.

Changes to Research Services: We are constantly endeavouring to improve the quality of Research Services provided to our clients. Due to this, the form and nature of the Research Services provided may change from time to time without any prior notice to the client. We reserve the right to introduce and initiate new features, functionalities, components to the Website and/or Research Services and/or change, alter, modify, or discontinue existing ones without any prior notice to the client.

Warranty and liability disclaimer: The Website, Research Services, and all the materials and services, included on or otherwise made available to the client through this Website is provided by the RA on an “as is” and “as available” basis without any representation or warranties, express or implied except otherwise specified in writing. Without prejudice to the foregoing paragraph, the RA does not warrant that:

  • This Website and/or Research Services will be constantly available, or available at all;
  • The information on this Website or provided through the Research Services is complete, true, accurate or not misleading; or
  • The quality of any products, services, information, or other material that you obtain through the Website or Services will meet your expectations.

The RA, to the fullest extent permitted by law, disclaims all warranties, whether express or implied, including the warranty of merchantability, fitness for particular purpose and non-infringement. The RA makes no warranties about the accuracy, reliability, completeness, or timeliness of the Website, Research Services, Content, Contributed Content, Services, software, text, graphics and links.

The RA does not warrant that this Website, Research Services, information, content, materials, or any other material included on or otherwise made available to you through this Website, their servers, or electronic communication sent by the RA are free of viruses or other harmful components.

Nothing on this Website constitutes, or is meant to constitute, advice of any kind.

Indemnification: The client:

  1. Represents, warrants and covenants that no materials of any kind provided by him/her will:
    1. Violate, plagiarise, or infringe upon the rights of any third party, including copyright, trademark, privacy or other personal or proprietary rights; or
    2. Contain libellous, Prohibited Content or other unlawful material;
  2. Hereby agree to indemnify, defend and hold harmless the RA and all of the RA’s officers, directors, owners, agents, customers/clients, information providers, affiliates, licensors and licensees (collectively, the “Indemnified Parties”) from and against any and all liability and costs, including, without limitation, reasonable advocate’s fees, incurred by the Indemnified Parties in connection with any claim arising out of any breach by the client of these Terms or the foregoing representations, warranties and covenants. The client shall cooperate as fully as reasonably required in the defence of any such claim. The RA reserves the right, at its own expense, to assume the exclusive defence and control of any matter subject to indemnification by the client.

Applicable law: This Website, including the Content and Contributed Content and information contained herein, and the provision of Research Services shall be governed by the Securities and Exchange Board of India, laws of the Republic of India and the courts of Chennai, India which shall retain exclusive jurisdiction to entertain any proceedings in relation to any disputes arising out of the same. As such, the laws of India shall govern any transaction completed using this Website.

Information gathered and tracked: Information submitted or collected on the Website or pursuant to the use of the Services is stored in a database. Specifically, we store the username, name, e-mail address, contact number, as submitted or collected on our Website or through the provision of the Research Services. We may use such information to send out occasional promotional materials, including alerts on new Services available, or other promotional and marketing material relating to our clients and customers.

In accordance with the Information Technology Act 2000, the name and the details of the Grievance Officer at PrimeInvestor is provided below:

Mr. Srikanth Meenakshi
PrimeInvestor Financial Research Pvt. Ltd., Registered office: 659, 4th Avenue, D-Sector, Anna Nagar Western Extension, Chennai 600 101.
Email: [email protected]

11. Mandatory notice:

Clients shall be requested to go through Do’s and Don’ts while dealing with RA as specified in SEBI master circular no. SEBI/HO/MIRSD-POD-1/P/CIR/2024/49 dated May 21, 2024 or as may be specified by SEBI from time to time.

12. Optional Centralised Fee Collection Mechanism:

SEBI has operationalized a centralized fee collection mechanism for IA and RA. Under this mechanism, clients shall pay fees to IAs/RAs through a designated platform/portal administered by a recognized Administration and Supervision body. This is an optional mechanism for the registered entities. At this time, PrimeInvestor has opted out of this fee collection mechanism. Therefore, all subscription payments for the Research Services will be through the modes as specified in Clause 5 of these Terms.

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