Tata Technologies Shares Fall As TPG To Sell Stake Worth Rs 654 Crore

Shares of Tata Technologies Ltd. fell over 1% on Wednesday as private equity major TPG is looking to offload stake worth Rs 654 crore through open market transactions.

According to the term sheet accessed by NDTV Profit, the shares will be sold on Wednesday via a block deal by TPG Rise Climate SF Pte, the entity through which the PE firm has invested in Tata Tech. TPG is looking to offload 85 lakh shares, or 2.1% stake in Tata Technologies.

The stake will be offloaded in a price range of Rs 744.5 to Rs 767.5 apiece, which means the sale will be at a discount of 0% to 3% to the closing price of Rs 767.5 apiece on Tuesday.

The block deal will be executed via BofA Securities, the news agency further added.

Notably, TPG held 2.44 crore shares, or around 6% stake in Tata Tech as of the quarter ended March 31.

In the January-March period, Tata Tech had logged a 12% sequential rise in net profit to Rs 188.9. The consolidated revenue declined 2.4% quarter-on-quarter to Rs 1,285.7 crore. The Tata Group firm also recommended a total dividend of Rs 11.7 per share.

Shares of Tata Technologies fell as much as 1.73% to Rs 754.20 apiece, the lowest level since May 28. They pared losses to trade 1.26% lower at Rs 756.95 apiece, as of 9:16 a.m. This compares to a 0.23% advance in the NSE Nifty 50.

It has fallen 25.25% in the last 12 months and 15.02% year-to-date. Total traded volume so far in the day stood at 3.83 times its 30-day average. The relative strength.

Out of 16 analysts tracking the company, two maintain a 'buy' rating, two recommend a 'hold' and 12 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 20.8%.