Tata Motors (NYSE:TTM), 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.
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