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Tata Motors Limited (TML) has announced the sale of a 9.9% stake in Tata Technologies Ltd (TTL) for a substantial INR 1,613.7 crore. The transaction, which is set to conclude within two weeks following standard procedures, is a significant step in TML’s ongoing efforts to de-leverage its balance sheet.
Tata Technologies Ltd (TTL), a distinguished subsidiary of TML, specializes in providing cutting-edge engineering services, primarily focusing on product development and digital solutions for a global clientele of Original Equipment Manufacturers (OEMs). With its expertise extending across various industries, including aerospace, transportation, and construction machinery, TTL plays an integral role in the development and innovation processes of these sectors.
The lead investor in this strategic deal is TPG Rise Climate, a prominent division of TPG’s formidable USD 18 billion impact investing platform. TPG Rise Climate is dedicated to channeling investments into climate-related sectors, supporting initiatives related to the energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions. By partnering with TPG Rise Climate, Tata Technologies Ltd (TTL) stands to benefit from the extensive resources and expertise that TPG brings to the table.
This sale marks a significant turning point for both Tata Motors and Tata Technologies, positioning them to navigate the evolving landscape of the automotive and engineering industries while contributing to the global imperative of combating climate change. The valuation of TTL at INR 16,300 crore (equivalent to approximately USD 2 billion) underscores the remarkable potential and value inherent in the company’s operations.
