The new facility will create 200 new engineering jobs and will serve England and Europe and is following growth in its business across the region, the company said in a statement issued from Warwick.
JPMorgan which has an overweight rating in Tata Motors and a March 2018 target price of Rs570 said that the funds from Tata Technologies could be used to partly pare down parent company debt of USD 2.9 billion
Sources privy to the development told CNBC-TV18 that Tata Group's engineering and IT firm, Tata Tech has sold a minority stake pegged at around USD 800 million to the American private equity firm.
"The acquisition helps Tata Technologies accelerate its plans to expand in Europe due to the rapid growth opportunity the region offers in both the automotive and industrial machinery sectors," the company said in a statement issued here.
Tata Technologies is keen on buying a few captive engineering centres, besides making significant additions to its headcount, Chief Executive and Managing Director Warren Harris
Media reports suggest that Warburg Pincus is likely to pick up a 40% stake in Tata Technologies (an engineering solutions and IT product developing arm of Tata Motors).
As it scales up the R&D chain and redefines its relationship with its parent, the company could be on track to meeting its target of USD 1 billion in revenues over the next two years, reports CNBC-TV18's Alexander Mathew.
Diversified business house Tata group is developing an electric car that is expected to be priced below USD 20,000 (over Rs 10 lakh) in partnership with France's Dassault Systemes.
Tata Technologies, a global leader in engineering services outsourcing and product development IT, today announced it has completed a round of equity funding for Rs 141.06 crore (USD 30 million) from Alpha TC Holdings Pte. Ltd and Tata Capital Growth Fund I.