<p>Tata Motors Ltd has begun its plan to turn debt-free in three years, by initiating the process of selling stakes in company arms Tata Technologies Ltd and Tata Hitachi Construction Machinery Co. Pvt. Ltd.</p>.<p>“Tata Motors has resumed talks with multiple stakeholders for potential equity stake sales in its software arm (Tata Technologies) and in the Hitachi joint venture," said a source, requesting anonymity, according to a <a href="https://www.livemint.com/companies/news/tata-motors-ready-to-sell-stakes-in-2-units-11599870591810.html" target="_blank">report </a>by <em>Mint</em>.</p>.<p>The intent is to monetize non-core assets, the person added, “and the exercise has begun with these two companies”.</p>.<p>The divestment plans are required for the parent of Jaguar Land Rover (JLR) Automotive Plc, which had net consolidated debt of Rs 68,000 crore as of July 31. The rising debt was compounded by the coronavirus pandemic.</p>.<p>The report also added that Tata Motors was unsuccessful when trying to get American private equity firm Warburg Pincus on board for a potential stake sale in Tata Technologies.</p>.<p>“While Tata Motors has decided to sell stakes in these two companies first, more non-core businesses would be opened up for stake sale soon. The company is also open to equity infusion by promoters towards reducing its debt," said the second source.</p>.<p>“There is nothing fresh to share beyond what was said in the AGM (annual general meeting)," a Tata Motors spokesperson said when asked about the stake-sale plans.<br /> <br />Tata Motors Group has halved its overall investments for this fiscal year.</p>.<p>Briefing about the plan, N Chandrasekaran, Chairman of Tata Motors, said that the company was looking at unlocking non-core investments. The management was generating free cash flows across its India and JLR businesses.</p>
<p>Tata Motors Ltd has begun its plan to turn debt-free in three years, by initiating the process of selling stakes in company arms Tata Technologies Ltd and Tata Hitachi Construction Machinery Co. Pvt. Ltd.</p>.<p>“Tata Motors has resumed talks with multiple stakeholders for potential equity stake sales in its software arm (Tata Technologies) and in the Hitachi joint venture," said a source, requesting anonymity, according to a <a href="https://www.livemint.com/companies/news/tata-motors-ready-to-sell-stakes-in-2-units-11599870591810.html" target="_blank">report </a>by <em>Mint</em>.</p>.<p>The intent is to monetize non-core assets, the person added, “and the exercise has begun with these two companies”.</p>.<p>The divestment plans are required for the parent of Jaguar Land Rover (JLR) Automotive Plc, which had net consolidated debt of Rs 68,000 crore as of July 31. The rising debt was compounded by the coronavirus pandemic.</p>.<p>The report also added that Tata Motors was unsuccessful when trying to get American private equity firm Warburg Pincus on board for a potential stake sale in Tata Technologies.</p>.<p>“While Tata Motors has decided to sell stakes in these two companies first, more non-core businesses would be opened up for stake sale soon. The company is also open to equity infusion by promoters towards reducing its debt," said the second source.</p>.<p>“There is nothing fresh to share beyond what was said in the AGM (annual general meeting)," a Tata Motors spokesperson said when asked about the stake-sale plans.<br /> <br />Tata Motors Group has halved its overall investments for this fiscal year.</p>.<p>Briefing about the plan, N Chandrasekaran, Chairman of Tata Motors, said that the company was looking at unlocking non-core investments. The management was generating free cash flows across its India and JLR businesses.</p>
