Tata Technologies Sees Heavy Selling After Block Deal: Stock Down 6%

Private equity firm TPG Rise Climate reportedly sold a 3.95% stake worth ₹1,094 crore in a block deal at a discount to the previous close.

Tata Technologies’ stock fell as much as 6% intraday, after a large block deal involving 3.95% of its equity (about 1.6 crore shares) changed hands for roughly ₹1,094 crore. 

The shares were sold at ₹683 apiece, representing a 3% discount to the previous session’s close. 

According to a report by CNBC-TV18, the likely seller was TPG Rise Climate, a private equity firm that has been gradually paring its stake in Tata Technologies. 

This sizable offloading by a major institutional investor triggered selling pressure, making Tata Technologies one of the worst performers on the NSE Nifty 500 indices on Tuesday. 

Earlier this month, the Pune-based Tata company reported a strong 20% year-on-year (YoY) rise in Q4 net profit. However revenue growth was flat and margins narrowed slightly, raising concerns about future growth momentum.

Goldman Sachs maintains a ‘Sell’ rating on the stock with a target price of ₹550, indicating a 21% downside. 

However, data on Stocktwits shows that retail sentiment remains ‘extremely bullish’ on the counter amidst high message volumes. 

 Tata Tech stock has fallen over 25% year-to-date (YTD). 

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