Tata Motors (NYSE:TTM) Limited (TML) is making strides in its de-leveraging strategy by selling a 9.9% stake in Tata Technologies Limited (TTL) for Rs 1,613.7 crore ($2 billion). This move is part of TML's target to reduce its net automotive debt to Rs 23,000 crore by the fiscal year 2025.
TTL is an engineering firm with expertise spanning across several sectors including automotive, aerospace, transportation, and heavy machinery. The company is known for providing product development and digital solutions.
The leading investor in this transaction is TPG Rise Climate, which has previously invested in Tata Passenger Electric Mobility Limited and has been a strategic partner in TML's electric mobility business.
This investment aligns with TPG Rise Climate's focus on energy transition and green mobility, which are key areas of its $18 billion impact investment platform. The stake sale in TTL is expected to bolster TML's efforts to lower its debt while also facilitating TPG Rise Climate's investment objectives.
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