Tata Motors made an official announcement on October 13, 2023, regarding its decision to sell a 9.9% stake in the upcoming IPO of Tata Technologies. The shares will be purchased by TPG Rise Climate and the Ratan Tata Endowment Foundation, overseen by Ratan Tata, Chairman of Tata Trusts. The transaction values this equity at an impressive 16,300 crore, approximately $2 billion.
In their official statement, Tata Motors clarified the details of the deal, stating, “Tata Motors Limited and TPG Rise Climate SF Pte. Ltd., a private equity fund with a dedicated focus on climate-related investments, have entered into a share purchase agreement on October 13, 2023. This agreement involves Tata Motors acquiring a 9% stake in Tata Technologies. Simultaneously, Tata Motors and the Ratan Tata Endowment Foundation, a Section 8 company, have entered into a share purchase agreement on the same date for the acquisition of a 0.9% stake in Tata Technologies.”
TPG Rise Climate, recognized as the specialized investment arm with a focus on climate-related initiatives within TPG’s extensive $18 billion global impact investing platform, has already demonstrated its commitment to this cause. Notably, it previously invested $1 billion in Tata Passenger Electric Mobility Limited, thereby cementing itself as a strategic partner in Tata Motors’ journey to revolutionize the electric passenger mobility sector in India.
This strategic decision underscores Tata Motors’ commitment to collaborating with key stakeholders in the climate and sustainability sector. It reinforces their dedication to shaping the future of mobility in India and aligning their goals with organizations that share a strong focus on addressing climate-related challenges.