An affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, has committed to invest around $360 million for approximately 43% equity stake in Tata Technologies. Warburg Pincus will purchase approximately 30% from Tata Motors and its subsidiary Sheba Properties, as well as the entire 13% stake held by Tata Capital (8.7% from Alpha TC Holdings and 4.3% from Tata Capital Growth Fund I). Post the transaction, Tata Motors and affiliates of the Tata Group will continue to retain a significant minority interest of approximately 43% in Tata Technologies, with the remaining ownership held by the management team and other shareholders.
Tata Technologies is a global engineering services and product development IT company with more than 8,500 employees located in 23 countries.
“Tata Technologies has developed significant engineering capabilities over the years. The partial divestment is part of Tata Motors’ plan to strategically monetise part of the value created, while also inducting a valuable partner, together with whom the company can excel in its next phase of growth,” said C Ramakrishnan, group CFO, Tata Motors. He added, “We look forward to partnering with Warburg Pincus and achieving greater heights for the company and all its stakeholders.”
“We are delighted to be partnering with the Tata Group to support the continued growth and development of the company. We look forward to backing the strong management team at Tata Technologies and leveraging Warburg Pincus’ global network and prior experience in the engineering services space to help grow the business, organically and inorganically, and create value for all stakeholders”, said Vishal Mahadevia, MD and co-head, Warburg Pincus India.
“This investment is a testament to our achievements to date and, more importantly, of our great potential moving forward,” said Tata Technologies CEO and MD Warren Harris.