Tata Motors announced today that it has sold a 9.9% stake in Tata Technologies Ltd. The deal was finalized at an equity valuation of ₹16,300 crore, which is approximately $2.0 billion.
This strategic divestment is part of Tata Motors’ ongoing efforts to streamline its operations and focus on its core business. The proceeds from the sale will be used to strengthen the company’s balance sheet and fund future growth initiatives.
Tata Technologies Ltd, a subsidiary of Tata Motors, is a global leader in engineering services outsourcing and product development IT services. The company plays a critical role in helping manufacturers design, validate and manufacture products.
The sale of the stake is expected to have a positive impact on Tata Motors’ financials, providing additional liquidity and reducing debt. It also allows Tata Technologies Ltd to bring in new investors who can contribute to its growth and expansion.
Tata Motors remains committed to its strategic objectives and this transaction is aligned with its long-term plans. The company will continue to hold a majority stake in Tata Technologies Ltd and work closely with it to drive synergies and deliver value for all stakeholders.
