Warbug Pincus acquires stake in Tata Technologies

An affiliate of leading private equity major Warburg Pincus has committed to invest $360 million for approximately 43% equity stake in Tata Technologies Limited, a global leader in engineering outsourcing and product development IT services.

According to the press release, “Warburg Pincus will purchase approximately 30% from Tata Motors Limited (“Tata Motors”) and its subsidiary Sheba Properties Limited, as well as the entire 13% stake held by Tata Capital (8.7% from Alpha TC Holdings Pte Ltd and 4.3% from Tata Capital Growth Fund I). Post the transaction, Tata Motors and affiliates of the Tata Group will continue to retain a significant minority interest of approximately 43% in Tata Technologies, with the remaining ownership held by the management team and other shareholders.”

“We are delighted to be partnering with the Tata Group to support the continued growth and development of the Company. We look forward to backing the strong management team at Tata Technologies and leveraging Warburg Pincus’ global network and prior experience in the engineering services space to help grow the business, organically and inorganically, and create value for all stakeholders”, said Vishal Mahadevia, Managing Director and Co-Head of Warburg Pincus India.