Tata Technologies shares fall 6% as TPG offloads 3.95% stake

Tata Technologies shares fell 6 per cent to ₹662 in early trading on Tuesday after 1.6 crore shares, representing 3.95 per cent of the company’s total equity, changed hands in a block deal. The shares are currently trading at ₹665.50, down by ₹40.10 or 5.68 per cent on the NSE today at 1.05 pm.

Reports suggest TPG Rise Climate, a US private equity firm affiliate, was the seller. According to sources, TPG planned to sell 15.86 million shares at ₹670-699, reflecting a discount of up to 5 per cent from Monday’s closing price. Prior to the sale, TPG Rise Climate held a 6.01 per cent stake in Tata Technologies.

The engineering services company, which provides outsourced engineering and digital transformation solutions to global manufacturing clients, has struggled to maintain its initial market momentum. Since its November 2023 debut at ₹1,200 (against an IPO price of ₹500), the stock has lost 50 per cent of its listing value, though it remains 32 per cent above its IPO price.

Tata Technologies recently reported a 20 per cent year-on-year increase in Q4 net profit to ₹188.87 crore, despite a 1.18 per cent decline in operating revenue to ₹1,285.65 crore. The company announced a final dividend of ₹8.35 per share and a special dividend of ₹3.35 per share.

For FY25, the Tata Group company secured 17 large deals, including one exceeding $500 million and two worth over $50 million each.

Published on April 29, 2025