India's Tata Motors on Friday said it will sell a 9.9% stake in Tata Technologies to U.S. private equity firm TPG and an endowment trust belonging to Tata Trusts Chairman Ratan Tata in a deal that values the unit at nearly $2 billion.
TPG fund TPG Rise Climate will pick up a 9% stake in the unit, which is set to go public, for 14.67 billion rupees ($176.22 million). The Ratan Tata Endowment Foundation will pick up the rest for 1.47 billion rupees, the carmaker said in an exchange filing.
The deal is expected to be completed by Oct. 27.
Tata Motors, India's biggest carmaker by revenue, said the deal is a part of a de-leveraging exercise. It raised $1 billion from the same TPG fund for an 11%-15% stake in its electric vehicle unit in 2021.
In March, Tata Motors said it would be selling 81.1 million shares held in Tata Technologies, according to the unit's draft papers filed in March.