TPG, Tata Foundation buy 9.9% in Tata Tech

livemint.com:

MUMBAI : Tata Motors Ltd sold a 9.9% stake in Tata Technologies Ltd for ₹1,613.7 crore to the Ratan Tata Endowment Foundation and TPG Rise Climate SF Pte. Ltd, a climate investment fund of TPG Global. The transaction, which values the IPO-bound Tata Technologies at around $2 billion, is in line with Tata Motors’ deleveraging strategy, according to a company release.

Tata Motors sold 9% to TPG Rise Climate for ₹1,467 crore and 0.9% to the Ratan Tata Endowment Foundation for ₹146.7 crore. The transaction is expected to be completed by 27 October or on a mutually agreed date between the parties. TPG Rise Climate, an investment arm of TPG’s $18 billion global impact investment platform, focuses on five climate sub-sectors: energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions.

The fund had previously invested $1 billion into Tata Passenger Electric Mobility Ltd and is a strategic partner in Tata Motors’ journey to create an electric passenger mobility business in India. Tata Technologies, which provides engineering and digital services for the automotive and aerospace sectors, is preparing to go public, marking the first initial public offering for a Tata Group entity in nearly two decades since Tata Consultancy Services Ltd got listed in 2004. Tata Technologies, which primarily acted as a captive outsourcing arm for Tata Motors in its initial years, has since been gradually diversifying away from it.