Mumbai, Oct 13: Tata Motors Limited (TML) is selling a 9.9 per cent stake in its subsidiary Tata Technologies (TTL) for Rs 1,613.7 crore as part of its plan to de-leverage. TTL has been valued at Rs 16,300 crore or approximately $2 billion.
This transaction furthers TML’s de-leveraging agenda and is expected to close in the next two weeks, subject to completion of customary closing procedures, the company said. As of June 2023, Tata Motors’ net automotive debt stood at Rs 41,700 crore. Analysts expect TML’s net debt to reduce to Rs 23,000 crore by the end of financial year 2025.
TPG Rise Climate is the lead investor for this transaction. TTL is a global engineering services company offering product development and digital solutions to global original equipment manufacturers. It has domain expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries, such as in aerospace, transportation, and construction heavy machinery.
TPG Rise Climate is the dedicated climate investing arm of TPG’s $18 billion global impact investing platform. The fund focuses on five climate sub-sectors: energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions. TPG Rise Climate had earlier invested $1.0 billion in Tata Passenger Electric Mobility Limited and is a strategic partner in TML’s electric passenger mobility business in India.
