Tata Technologies, the engineering design and technology arm of the Tata Group, is looking to tap the capital market through an initial public offering (IPO) by next year, a senior company official said here.

"We are looking to list Tata Technologies in India via an IPO in 2008," David Myers, chief financial officer of UK-based INCAT, a Tata Technologies company, said here.

The funds would be used to repay some debt and expansion programmes, Myers told a group of visiting Indian journalists here.

"We have set a goal to increase our total revenue to $500 million by 2010 from about $220 million currently," he said.

Tata Technologies had acquired INCAT in October 2005. Prior to it, INCAT had listed on the London Stock Exchange's AIM market nearly a year ago in November 2004.

INCAT was listed on AIM at a price of 128 pence per share, after raising a total of 13 million pounds in the IPO. However, in less than a year, its 53 million pound acquisition by Tatas raised its value to more than 200 pence a share.