Tata Technologies Ltd, a subsidiary of Tata Motors Ltd, witnessed a 7% surge in its shares on April 2 following the announcement of a joint venture with BMW Group. This venture aims to develop software for the renowned German luxury automaker. Tata Technologies stated that the collaboration would assist BMW Group in engineering premium products, enhancing digital experiences for customers, and advancing its digital transformation journey.
As of 10:25 am on April 2, Tata Technologies’ shares were trading at Rs 1,123.15, marking a 7% increase. The stock’s all-time high is Rs 1,400.
The focus of the joint venture will be on providing automotive software, including software-defined vehicle (SDV) solutions for premium vehicles, and digital transformation solutions for corporate IT, according to Tata Technologies.
“This partnership will embodies a shared commitment to innovation and excellence in automotive engineering and digital solutions,” the company added.
In the newly formed entity, each partner will hold a 50% stake.
Tata Technologies revealed its plan to initially establish the company as a wholly-owned subsidiary. Once both parties meet the closing conditions, including merger control approval, BMW will invest in the newly incorporated company, acquiring a 50% stake in the post-investment equity share capital. “Upon the establishment of this joint venture, 100 skilled and seasoned professionals from Tata Technologies will promptly contribute to software projects. The joint venture agreement includes provisions such as Call and Put Option to shareholders, Shareholder Reserved Matters, Deadlock, and other standard clauses concerning company management, governance, administration, and exit,” the company stated.
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