Ahead of the IPO, Tata Motors will sell 9.9% stake in Tata Technologies for about Rs 1,614 crore. TPG Rise Climate will pick up about 9% stake in the transaction, which valued Tata Technologies at Rs 16,300 crore ($2 billion) while Ratan Tata Endowment Foundation will buy the remaining 0.9% from Tata Motors.
TPG Rise Climate previously invested $ 1 billion in Tata Passenger Electric Mobility Limited and Tata Motors to create an electric passenger mobility business that is shaping the market in India Journey has a strategic partner.
Tata Motors said the transaction is expected to be completed by October 27, 2023. The parent, Tata Motors, will receive ₹1,467 crore on selling its 9% stake in Tata Technologies to TPG Rise Climate and ₹146.7 crore on selling its 0.9% stake to Ratan Tata Endowment Foundation. As of March 31, 2023, Tata Technologies had income from operations of ₹ 4,414 crore and Net Asset ₹ 2,989 crore.
Founded in 2016, by TPG in partnership with Bono and Jeff Skoll, TPG Rise Climate is the dedicated climate impact investing fund of TPG’s $18 billion global impact investing platform. The Rise Funds’ core areas of focus include climate and conservation, education, financial inclusion, food and agriculture, healthcare, and impact services.
In August 2022, India’s largest consumer lending fintech, EarlySalary, had raised series D funding round of $110 million led by TPG’s The Rise Fund along with Norwest Venture Partners.
Back to Tata Technologies, the company recently joined AUTOSAR, a worldwide development partnership of car manufacturers, suppliers, and other companies, as a premium partner.
Tata Technologies is also the partner of Foxconn led open electric vehicle development platform, Mobility in Harmony Consortium, also known as the MIH Consortium.
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