Tata Motors To Sell 9.9% Stake In Tata Technologies For $194 Mln

Tata Motors Ltd. agreed to sell a 9.9% stake in its subsidiary Tata Technologies Ltd. to certain investors for a total 1,613.7 crore rupees ($194 million).

The Indian automaker will sell a 9% stake in Tata Technologies to TPG Rise Climate SF Pte. Ltd. for 1,467.0 crore rupees, Tata Motors said in a stock exchange announcement. TPG Rise Climate is a climate focused private equity fund of TPG.

The company is selling a 0.9% stake in its initial public offering-bound subsidiary to Ratan Tata Endowment Foundation for 146.7 crore rupees.

The transaction ascribes an equity valuation of 16,300 crore rupees to Tata Technologies, according to the statement. The engineering services company offers product development and digital solutions to global original equipment manufacturers, it said.

Tata Motors said the transaction furthers the company’s de-leveraging agenda.

The deal is likely to be completed by 27 October, subject to customary closing procedures.

Note: $1 = 83.2286 Indian rupees

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