Warburg Pincus planning to acquire stakes worth Rs 2,300 crore in Tata Tech
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Private equity firm Warburg Pincus is looking forward to acquiring a significant minority stake in Tata Technologies for Rs 2,300 crore, ending months of negotiations.
According to multiple people aware of the development, for over a year, the company has been looking to divest 26-40% for a Rs 5,400 crore ($800 million) valuation.
Tata Technologies is an engineering design services company that started out as a subsidiary division of Tata Motors before becoming a standalone company. Currently, Tata Motors owns 70% of the company. Apart from that, several other Tata group entities and senior executives own 17% and the rest is held by outside financial investors.
About 55% of its turnover and an even greater number of its profits still come from Tata group companies like JLR and Tata Motors. The company is headquartered in Singapore and started as a design company in 1994 for Tata Motors' automotive business. Currently, it earns one third of its revenue fromNorth America , Europe and Asia Pacific. Nearly 65% of its business comes from the automotive sector, 12% from aerospace and the rest from industrial machinery and other businesses.
"As stated before, from time to time, we review the performance of our non-core assets and companies and see how we can monetize them. We do not have any additional comment to offer at this point of time,” a Tata Motors spokesperson told ET:
A formal announcement is expected within a month, said officials mentioned above.
"They are the only investors with whom theTatas are currently engaged with. It will be interesting to see if Tatas give a revenue commitment., " an official in the know, told ET.
Warburg among the easiest PE investors in India had last February successful exited their investment on QueEST another engineering design services
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According to multiple people aware of the development, for over a year, the company has been looking to divest 26-40% for a Rs 5,400 crore ($800 million) valuation.
About 55% of its turnover and an even greater number of its profits still come from Tata group companies like JLR and Tata Motors. The company is headquartered in Singapore and started as a design company in 1994 for Tata Motors' automotive business. Currently, it earns one third of its revenue from
"As stated before, from time to time, we review the performance of our non-core assets and companies and see how we can monetize them. We do not have any additional comment to offer at this point of time,” a Tata Motors spokesperson told ET:
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"They are the only investors with whom the
Warburg among the easiest PE investors in India had last February successful exited their investment on QueEST another engineering design services
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