Tata Motors has announced that it has entered into share purchase agreements to sell 9.9 percent stake in Tata Technologies for a consideration of Rs 1,613.7 crore. TPG Rise Climate is the lead investor for this transaction, which ascribes an equity valuation of Rs 16,300 crore ($ 2 billion).
Tata Technologies is a subsidiary of Tata Motors and is a leading global engineering services company offering product development and digital solutions to OEMs. It has deep domain expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries, such as in aerospace, transportation and construction heavy machinery.
The company’s deep manufacturing domain knowledge and globally distributed service delivery capability helps it deliver value-added services to its clients.
TPG Rise Climate is the dedicated climate investing arm of TPG’s $18 billion global impact investing platform. The fund focuses on five climate sub-sectors: energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions.
Tata Motors states that this furthers its de-leveraging agenda and is expected to close in the next two weeks on completion of customary closing procedures.
It may also be noted that TPG Rise Climate has also invested $1 billion in Tata Passenger Electric Mobility
