Tata Motors announced that it has signed a deal with TPG Rise Climate to sell a 9.9% stake in its IPO-bound subsidiary Tata Technologies Ltd, Tata Group said in a statement on Friday, October 13.
A dedicated climate investing arm of TPG’s $18 billion global impact investing platform, TPG Rise Climate is the lead investor for this transaction, which ascribes an equity valuation of Rs 16,300 crore for Tata Technologies, it added.
“This transaction furthers Tata Motor’s de-leveraging agenda and is expected to close in the next two weeks on completion of customary closing procedures,” the automaker said.
TPG Rise Climate had earlier invested $1 billion in Tata Passenger Electric Mobility Ltd and is a strategic partner in the company’s journey to create a market-shaping electric passenger mobility business in India. Tata Technologies is a leading global engineering services company offering product development and digital solutions to global original equipment manufacturers.
Tata Technologies has deep domain expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries, such as aerospace, transportation and construction heavy machinery. The fund focuses on five climate sub-sectors: energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions.
Tata Technologies had last week said it is reserving a portion of its upcoming initial public offering (IPO) for employees and Tata Motors Ltd shareholders.
Tata Tech received the Sebi nod for its IPO on June 28, making it the first public issue from the Tata Group stable since Tata Consultancy Services IPO in July 2004.
Tata Motors currently has a 74.69 percent stake in the company, while Alpha TC Holdings Pte has a 7.26 percent stake. Tata Capital Growth Fund I has a 3.63 percent stake in the firm.
Shares of Tata Motors on Friday ended 4.76% up at Rs 667.15 apiece on the BSE.