Private Equity firm Warburg Pincusplans to endow $360 million in Tata Technologies Ltd with an aim to acquire an estimated equity stake of 43%.
Warburg Pincus plans to get hands on 30% stake from Tata motors and its subsidiary Sheba Properties Limited, as well as 13% stake held by Tata Capital. After the deal is done, the minority stake will still be kept by Tata Motors and other Tata group firms in Tata Technologies. The leftover of 14% stake will be owned by employees of Tat Technologies, company statement said.
Warburg Pincus past investments in India are majorly in PVR Ltd, Bharti Airtel and Kalyan Jewellers. But this is the biggest deal for the PE firm in India till date.
Tata Motors Group CFO C Ramakrishnan said that The partial disinvestment is part of Tata Motors plan to strategically monetise part of the value created while also inducting valuable partners, together with whom the company can excel in its next phase of growth.
This transaction represents a tremendous endorsement of what we have achieved so far, said Tata Technologies managing director and chief executive Warren Harris, Livemint reported.