Shares of Tata Motors opened in the red on Monday after closing the last week with an over 7% gain.
What Happened: The Tata Group company late on Friday announced entering into share purchase agreements with TPG Rise Climate SF Pte and Ratan Tata Endowment Fund for a 9.9% stake in Tata Technologies.
This sale values Tata Technologies at ₹16,300 crore. TPG Rise Climate SF Pte. Ltd, a climate-focused private equity fund previously invested in Tata Motors’ electric vehicle segment, will acquire 9% of Tata Technologies. On the other hand, the Ratan Tata Endowment Fund will purchase the remaining 0.9% stake in Tata Technologies.
See Also: What Is Tata Sons Share Price And How To Buy
The sale of shares comes ahead of Tata Technologies IPO which would be the first IPO from the Tata Group in nearly 20 years. This IPO will involve the sale of up to 9.57 crore equity shares, representing approximately 23.6% of the company’s total shares.
For the fiscal year 2022-2023 (FY23), Tata Technologies reported a 25% increase in revenue, reaching ₹4,418 crore, and a 63% rise in profit after tax at ₹708 crore.
Price Action: Tata Motors’ share price was down 0.66% to trade at ₹662.70 as the markets opened on Monday.
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