Tata Motors to pare 9.9% stake in Tata Technologies to TPG

16 Oct 2023 , 09:07 AM

Tata Motors stated on Friday, October 13, that it has reached an agreement with TPG Rise Climate to sell a 9.9% share in its IPO-bound subsidiary Tata Technologies Ltd for Rs 1,613.70 crore. 

TPG Rise Climate, a dedicated climate investing arm of TPG’s $18 billion global impact investing platform, is the main investor in this transaction, which assigns an equity valuation of Rs 16,300 crore to Tata Technologies, the company said.

TPG Rise Climate previously invested $1 billion in Tata Passenger Electric Mobility Ltd and is a significant partner in the company’s mission to build a market-shaping electric passenger mobility business in India. Tata Technologies is a major worldwide engineering services firm that provides global original equipment manufacturers with product development and digital solutions.

Tata Technologies announced last week that a portion of its impending initial public offering (IPO) will be reserved for employees and Tata Motors Ltd shareholders.

Tata Technologies has strong domain expertise in the automotive industry, which it utilises to service clients in related industries such as aerospace, transportation, and heavy machinery building.