Tata Technologies, a unit of Indian carmaker Tata Motors, filed for an initial public offering (IPO) on Thursday, according to draft papers submitted to the market regulator.

However, Tata Tech, which provides engineering and product development digital services, said it will not offer any of the 95.7 million shares, representing around 23.6% of its paid-up share capital, to be sold in the IPO.

Instead, Tata Motors, which has a 74.69% stake in Tata Tech, will sell up to 81.1 million shares, while Alpha TC Holdings will sell 9.7 million shares and Tata Capital Growth Fund I will sell 4.9 million shares.

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

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

Tata Motors said in December it was exploring the possibility of selling part of its stake in Tata Tech through a public float.

JM Financial, Citigroup Global Markets India and BofA Securities India are the booking-running lead managers for the issue. ($1 = 82.0630 Indian rupees) (Reporting by Nishit Navin in Bengaluru; Editing by Dhanya Ann Thoppil and Savio D'Souza)