[ad_1]
MUMBAI: Tata Motors will sell a 9.9% stake in its IPO-bound arm Tata Technologies to US private equity firm TPG and Tata Trusts chairman Ratan Tata’s private endowment foundation for Rs 1,614 crore.
TPG’s climate investing arm will acquire 9% in the product engineering company for Rs 1,467 crore, while Ratan Tata Endowment Foundation (RTEF), which was set up by the industrialist last year, will buy a little under 1% stake in Tata Tech for Rs 147 crore, marking its maiden investment in equities.
Friday’s deal values Tata Tech, a company envisioned by Ratan Tata after he saw an opportunity in the evolving product engineering space, at Rs 16,300 crore.
RTEF, a section 8 non-profit company, as well as TPG Rise focus on impact investing (meaning the platforms intend to create a positive social impact while also generating returns on capital).
The Tata Tech deal will be concluded by October 27, Tata Motors, India’s biggest carmaker by revenue, said in a stock exchange filing.
The move is part of its deleveraging agenda, it added. Tata Motors had a net debt of Rs 41,700 crore as on June 30 and has targeted to achieve zero net debt by the end of this fiscal. Tata Tech IPO, the first such offering from the Tata Group in 19 years, will see Tata Motors and other shareholders selling as much as 24% in the Rs 4,414 crore company, according to the unit’s draft IPO documents filed in March.
TPG Rise is already a lead investor in Tata Motors’ passenger electric vehicle unit. In 2021, it, along with Abu Dhabi’s ADQ, announced an investment of Rs 7,500 crore in the electric vehicle business, which will give the duo a stake of 11-15% in this unit.
TPG’s climate investing arm will acquire 9% in the product engineering company for Rs 1,467 crore, while Ratan Tata Endowment Foundation (RTEF), which was set up by the industrialist last year, will buy a little under 1% stake in Tata Tech for Rs 147 crore, marking its maiden investment in equities.
Friday’s deal values Tata Tech, a company envisioned by Ratan Tata after he saw an opportunity in the evolving product engineering space, at Rs 16,300 crore.
RTEF, a section 8 non-profit company, as well as TPG Rise focus on impact investing (meaning the platforms intend to create a positive social impact while also generating returns on capital).
The Tata Tech deal will be concluded by October 27, Tata Motors, India’s biggest carmaker by revenue, said in a stock exchange filing.
The move is part of its deleveraging agenda, it added. Tata Motors had a net debt of Rs 41,700 crore as on June 30 and has targeted to achieve zero net debt by the end of this fiscal. Tata Tech IPO, the first such offering from the Tata Group in 19 years, will see Tata Motors and other shareholders selling as much as 24% in the Rs 4,414 crore company, according to the unit’s draft IPO documents filed in March.
TPG Rise is already a lead investor in Tata Motors’ passenger electric vehicle unit. In 2021, it, along with Abu Dhabi’s ADQ, announced an investment of Rs 7,500 crore in the electric vehicle business, which will give the duo a stake of 11-15% in this unit.
#Tata #Motors #sell #stake #arm #TPG #Ratan #Tata #foundation
