Tata Motors on 13 October announced to sell its 9.9 percent in Tata Technologies Limited (TTL) for an aggregate consideration of ₹1,614 crore, it said in a stock regulatory filing.
The automotive major entered into share purchase agreements to sell its stake in its subsidiary, for which TPG Rise Climate is the lead investor that ascribes an equity valuation of ₹16,300 crore of TTL.
“Tata Motors Limited (TML) has entered into share purchase agreements to sell a 9.9% stake in Tata Technologies Ltd (TTL) for an aggregate consideration of INR 1,613.7 crore. TPG Rise Climate is the lead investor for this transaction, which ascribes an equity valuation of INR 16,300 Cr (~US$ 2.0 billion) for TTL,” Tata Motors’ release said.
The expected date of completion of the sale is 27 October 2023 or such other date as may be mutually extended by the parties, the release said.
Also, the release said that the amount of ₹1,467 crore will be received by Tata Motors Limited as consideration for the sale of its 9.0 percent stake in TTL to the TPG Rise Climate SF Pte. Ltd – a climate-focused private equity fund.
While ₹146.7 crore will be received by the automotive major as consideration for the sale of its 0.9 percent stake in TTL to Ratan Tata Endowment Foundation.
As per details, TPG Rise Climate is the dedicated climate investing arm of TPG’s $18 billion global impact investing platform. This fund focuses on five climate sub-sectors including energy transition, green mobility, sustainable fuels, sustainable molecules, and carbon solutions.
Tata Motors said that the new transaction will further TML’s de-leveraging agenda and is expected to close in the next two weeks on completion of customary closing procedures.
Earlier, TPG Rise Climate invested $1.0 billion in Tata Passenger Electric Mobility Limited and is a strategic partner in TML’s journey to create a market-shaping electric passenger mobility business in India.