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

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.

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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.

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