Tata Tech Shares Plunge 6% After TPG Rise Likely Unloads 3.95% stake in Rs 1,094 Crore Deal

Shares of Tata Tech bore the brunt of heavy selling and tanked around 6% on April 29 after a bulk deal worth Rs 1,094 crore took hit the counter.. As many as 1.5 crore shares of the company changed hands at a floor price of Rs 683 per share, with TP Rise Climate SF Pte being the likely seller in the transaction.

However, confirmation on the buyers and sellers involved in the stake sale are still awaited.

Earlier reports by NDTV Profit had indicated that TPG Rise Climate, an entity linked to US private equity firm TPG Inc. was looking to sell around 1.6 crore shares of Tata Tech in a price band of Rs 670 to Rs 699, offering a discount of up to 5% to the current market price. At the upper end of the price band, the deal would have commanded a valuation of around Rs 1,109 crore.

TPG Rise Climate owned a 6.01% stake in Tata Technologies, as per the company’s latest shareholding data. Meanwhile, the NDTV-Profit report further added that the bulk deal will initiate a 60-day lock-in period before TPG Rise could execute another stake sale.

In other news, Tata Tech also released its Q4 numbers recently, wherein the company posted a 20% uptick in its consolidated net profit. Tata Tech’s net profit came at Rs 189 crore in the March quarter, up from the Rs 157 crore that it clocked in the same period last fiscal.

Despite the profit rise, the company’s revenue growth took a hit in Q4 as the topline dell 1.2% on year to Rs 1,286 crore. With a weak topline, it was Tata Tech’s strong hold over expenses that helped the company report a double-digit profit growth.  

TPG Rise Climate owned a 6.01% stake in Tata Technologies, as per the company’s latest shareholding data. Meanwhile, the NDTV-Profit report further added that the bulk deal will initiate a 60-day lock-in period before TPG Rise could execute another stake sale.

In other news, Tata Tech also released its Q4 numbers recently, wherein the company posted a 20% uptick in its consolidated net profit. Tata Tech’s net profit came at Rs 189 crore in the March quarter, up from the Rs 157 crore that it clocked in the same period last fiscal.

Despite the profit rise, the company’s revenue growth took a hit in Q4 as the topline dell 1.2% on year to Rs 1,286 crore. With a weak topline, it was Tata Tech’s strong hold over expenses that helped the company report a double-digit profit growth.