Tata Technologies Share Price Falls Over 5% After Block Deal, Down 50% From Listing Price

Tata Technologies share price dropped by over 5% on Tuesday, April 29, to ₹662 per share after nearly 16 million shares, or 3.95% of the company’s equity, were traded in a large block deal. The names of the buyers and sellers are not yet known. A day earlier, reports suggested that TPG Rise Climate, linked to US-based TPG Inc., planned to sell around 15.86 million shares (3.89% stake) in Tata Technologies at a discounted price of ₹670–₹699 per share.

TPG’s Stake and Discounted Sale

As of March 2025, TPG held a 6.01% stake (about 2.43 crore shares) in the company. The reported deal would reduce its holding significantly, with the sale likely offering up to a 5% discount compared to Monday’s closing price.

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Core Business and Stock Performance Since Listing

Tata Technologies provides engineering and digital transformation services to global manufacturing companies, helping them design and develop better products. The company had a strong debut on the stock market on November 30, 2023, listing at ₹1,200 per share, far above its IPO price of ₹500. However, the stock has lost nearly 50% of its value since then and has closed lower in 13 of the last 18 months. Even so, it still trades 32% above its IPO price.

Q4 FY25 Profit Jumps 20%, Revenue Slightly Down

For the January–March quarter of FY25, Tata Technologies reported a 20% rise in net profit to ₹188.87 crore, up from ₹157.24 crore a year ago. However, revenue dipped by 1.18% YoY to ₹1,285.65 crore. Operating EBITDA was ₹233 crore, and margins remained flat at 18%.

Dividends and Deal Wins Announced

The company announced a final dividend of ₹8.35 per share along with a special one-time dividend of ₹3.35 per share. It also shared that it secured 17 large deals in FY25, including one major contract worth over $500 million, two deals over $50 million, and another over $20 million.

Conclusion

Tata Technologies continues to strengthen its business through steady profit growth and large deal wins. However, heavy selling pressure from major investors like TPG and weak stock performance since listing highlight the challenges the company faces in maintaining investor confidence in the near term.

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