Tata Motors gains on plans to sell Rs 1,600-cr shares in Tata Tech IPO

TPG, which also invested in Tata Motors’ electric vehicle business, will pick up 9 percent of Tata Technologies while Ratan Tata Endowment Fund (RTEF) will buy the remaining 0.9 percent.

Shares of Tata Motors Limited traded 0.5 percent higher at Rs 670 in early trade on October 16, extending gains for the fifth day on the bourses.

The company has announced that it has agreed to sell a 9.9 percent stake in IPO-bound Tata Technologies for Rs 1,613.7 crore.

The stake will be purchased by TPG Rise Climate SF Pte Ltd, a climate-focused private equity fund, and Ratan Tata Endowment Foundation, for an equity valuation of Rs 16,300 crore.

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TPG, which also invested in Tata Motors’ electric vehicle business, will pick up 9 percent of Tata Technologies while Ratan Tata Endowment Fund (RTEF) will buy the remaining 0.9 percent.

The country's leading electric vehicle manufacturer will receive Rs 1,467 crore as a consideration for the sale of its stake to TPG, while RTEF will pay Rs 146.7 crore. The transaction is to be completed by October 27, it said.

Tata Technologies is a global engineering services company that provides a range of product development and digital solutions, including complete turnkey solutions, to worldwide original equipment manufacturers (OEMs). Leveraging its domain expertise primarily in the automotive industry, the company extends its services to clients across various sectors, including aerospace, transportation, and heavy machinery.

Tata Technologies, which may soon go public, will be the first such offer from Tata Group in nearly two decades. The IPO includes the sale of up to 9.57 crore equity shares, which accounts for 23.6 percent of the company's paid-up share capital.

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