Tata Motors is selling an around 10 per cent stake in subsidiary Tata Technologies Ltd (TTL) to TPG Rise Climate for Rs 1,613.7 crore. The transaction values IPO-bound Tata Technologies at 16,300 crore.
“Tata Motors has entered into share purchase agreements to sell a 9.9 per cent stake in TTL for an aggregate consideration of Rs 1,613.7 crore. TPG Rise Climate is the lead investor for this transaction,” the homegrown auto major said in a statement post-market hours on Friday.
TTL is a global engineering services company offering product development and digital solutions to global original equipment manufacturers. It has expertise in the automotive industry and leverages this expertise to serve clients in adjacent industries such as aerospace, transportation, and construction heavy machinery.
Zinnov, the global management consulting firm, has estimated the global engineering, research and development spending to be around $1.64 trillion as of 2021 and expects it to grow to $2.28-2.33 trillion by 2025.
