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Tata Motors offloads 9.9% stake in Tata Technologies to reduce debt

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© Reuters.

Tata Motors (NYSE:), the parent company of Jaguar Land Rover Automotive Plc, is selling a 9.9% stake in Tata Technologies Ltd (TTL) to TPG Rise Climate Fund and Ratan Tata endowment foundation. The deal, part of Tata Motors’ strategy to become debt-free, is valued at Rs 1,613.7 crore ($217 million) and is expected to close within two weeks.

Following this transaction, Tata Motors’ holding in TTL will decrease from 74.69% to 64.79%. Other stakeholders in TTL include Alpha Technologies Pte, Tata Capital Growth Fund I, and Tata Motors Finance Zedra Corporate Services, collectively holding the remaining 25.3% stake. The implied valuation of the stake is Rs 12,500 crore ($1.68 billion).

This sale comes ahead of TTL’s initial public offering (IPO), where it plans to offer 95.7 million shares at a face value of ₹2 each. TTL, a company under the Tata Group that provides engineering solutions to sectors like automotive and aerospace, will be the first company from the group to go public after nearly a decade. The IPO is an offer for sale (OFS) with Tata Motors, Alpha TC Holdings Pte., and Tata Capital Growth Fund I offloading a combined total of 95,708,984 equity shares. A 10% quota has been reserved for Tata Motors’ eligible shareholders in the public issue.

TPG Rise Climate Fund, part of TPG’s $18 billion global impact investing platform, has previously invested $1 billion in Tata Passenger Electric Mobility Ltd and focuses on sectors like energy transition and green mobility.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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