Tata Motors Limited witnessed a minor setback in early trading on October 16 as its shares declined by 0.14 percent, settling at Rs 666. This decline comes after the company had been on a four-day upward trajectory on the stock market.
Tata Motors had recently disclosed its intentions to sell a 9.9 percent stake in Tata Technologies, a company preparing for an initial public offering (IPO), for a substantial sum of Rs 1,613.7 crore.
The stake will be acquired by TPG Rise Climate SF Pte Ltd, a private equity fund with a climate-focused approach, along with the Ratan Tata Endowment Foundation, all of which will translate to an equity valuation of Rs 16,300 crore.
TPG, known for its prior investment in Tata Motors’ electric vehicle business, is set to secure a significant 9 percent share of Tata Technologies, while the Ratan Tata Endowment Fund (RTEF) will acquire the remaining 0.9 percent.
Tata Motors, a prominent player in the electric vehicle market, is poised to receive Rs 1,467 crore in exchange for its stake from TPG, with RTEF contributing Rs 146.7 crore. The entire transaction is scheduled for completion by October 27, according to the company’s official statement.
Tata Technologies, recognized as a global engineering services company, specializes in delivering an array of product development and digital solutions. With a primary focus on the automotive industry, it extends its services to clients across various sectors, encompassing aerospace, transportation, and heavy machinery.
Tata Technologies, poised to go public in the near future, represents a significant milestone as it marks the first IPO offering from the Tata Group in nearly two decades. This IPO includes the sale of up to 9.57 crore equity shares, amounting to 23.6 percent of the company’s total paid-up share capital.