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Tata Technologies Block Deal: TPG to Divest Remaining 2.1% Stake

Written by: Sachin GuptaUpdated on: Jun 4, 2025, 9:42 AM IST
Tata Technologies shares to see a block deal, whereby TPG is to sell its 2.1% stake in the company.
Tata Technologies Block Deal: TPG to Divest Remaining 2.1% Stake
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Private equity firm TPG is preparing to divest its remaining 2.1% stake in Tata Technologies through a block deal valued at ₹634 crore, according to news reports.

The stake is held through TPG Rise Climate SF Pte Ltd, and the transaction is being executed as a clean-up trade, managed by BofA Securities.

Block Deal Details and Pricing Strategy

The floor price for the share sale has been set at ₹744.5 per share, which reflects a 3% discount to Tata Technologies’ closing price of ₹767.50 on the National Stock Exchange (NSE) as of June 3, 2025. The price band for the deal ranges between ₹744.5 and ₹767.5 per share. This places the total deal value at approximately $74 million (₹634 crore).

Tata Technologies Financial Performance

Tata Technologies Limited delivered a strong operating performance driven by strategic deal wins and steady revenue growth across segments.

For FY25, the company reported total operating revenue of ₹51,685 million. Operating EBITDA stood at ₹9,341 million, reflecting an EBITDA margin of 18.1%. Over the past three years, the company’s revenue from operations has grown at a compound annual growth rate (CAGR) of 13.6%, while operating EBITDA has grown at a CAGR of 13%, underscoring sustained operational efficiency. Tata Technologies closed a total of 17 large deals during the fiscal year, including a marquee engagement worth over $500 million, two deals exceeding $50 million, and one valued at more than $20 million.

Also Read: Best Semiconductor Stocks in June 2025: Tata Elxsi, Dixon Tech & More Based on 5-Year CAGR

For Q4FY25, the company posted total operating revenue of ₹12,857 million. The services segment contributed ₹10,241 million, marking a 1.1% quarter-on-quarter growth. In USD terms, services revenue stood at $118.1 million, remaining flat on a constant currency basis. Operating EBITDA for the quarter came in at ₹2,334 million, with an EBITDA margin of 18.2%, an improvement from 17.8% in the previous quarter.

Net income for the fourth quarter rose to ₹1,889 million, registering a 12.0% increase quarter-on-quarter and a 20.2% jump year-on-year. The net profit margin improved to 14.7%, up from 12.8% in Q3 FY25 and 12.1% in Q4 FY24, reflecting stronger profitability. However, the company reported a marginal uptick in attrition, with the last twelve-month (LTM) attrition rate at 13.2%, compared to 12.9% in the previous quarter.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Jun 4, 2025, 9:42 AM IST

Sachin Gupta

Sachin Gupta is a Content Writer with 6+ years of experience in the stock market, including global markets like the US, Canada, and Australia. At Angel One, Sachin specialises in creating financial content that simplifies complex market trends. Sachin holds a Master's in Commerce, specialising in Economics.

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