Tata Motors divests stake in Tata Technologies

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Tata Motors has recently signed an agreement to divest approximately 10% of its stake in Tata Technologies, a subsidiary of the company, to TPG Rise Climate among others for a total consideration of Rs 1,613.7 crore. The deal comprises a sale of 9.9% of Tata Technologies Ltd (TTL) and values the entity at Rs 16,300 crore. This strategic move aligns with Tata Motors’ debt-reduction strategy and is set to conclude in the coming two weeks, following customary closing procedures.

TPG Rise Climate, a key investor in this transaction, has already invested USD 1 billion in Tata Passenger Electric Mobility Ltd and is actively participating in Tata Motors’ journey to pioneer the electric passenger mobility sector in India. TTL, as a subsidiary of Tata Motors, specializes in offering global engineering services, catering to original equipment manufacturers with product development and digital solutions. Their expertise extends not only to the automotive industry but also to related sectors such as aerospace, transportation, and heavy machinery for construction.

TPG Rise Climate is the climate-focused investment arm of TPG’s global impact investing platform, with a specific emphasis on five climate sub-sectors, including energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions. This strategic partnership showcases Tata Motors’ commitment to the growing electric and sustainable mobility sector, which is increasingly gaining importance in the automotive industry.

Following this announcement, Tata Motors’ stock price surged by 4.76% to Rs 667.15 on the BSE. This move positions Tata Motors to strengthen its financial position and further its commitment to environmentally responsible transportation solutions.