Shares of Tata Technologies Ltd, a subsidiary of Tata Motors Ltd, rose 7 per cent on April 2 after it announced a joint venture with BMW Group for the development of software for the German luxury automaker. In a filing to stock exchanges, Tata Technologies said the joint venture would aid BMW Group in engineering premium products, delivering great digital experiences for its customers and propelling its digital transformation journey.
On April 2 at 10:25 am, Tata Technologies’ shares were trading 7 per cent higher at Rs 1,123.15. The all-time high of the stock is Rs 1,400.
The focus would be on delivering automotive software, including software-defined vehicle (SDV) solutions for its premium vehicles and digital transformation solutions for business IT, Tata Technologies said.
“This collaboration between Tata Technologies and BMW Group represents a shared vision of innovation and excellence in automotive engineering and digital solutions,” it added.
In the new company that will be incorporated, each partner will hold 50 per cent stake.
Tata Technologies said it would initially incorporate the company as a wholly-owned subsidiary. Once closing conditions (including merger control approval) are met by both parties, BMW shall invest in the said incorporated company to hold 50 per cent of the post-investment equity share capital in that entity.
“From the inception of this joint venture, 100 trained and experienced Tata Technologies professionals will ensure robust and immediate contributions to software projects. Call and Put Option to shareholders, Shareholder Reserved Matters, Deadlock and other standard clauses on management of the company, governance and administration, exit, have been included in the joint venture agreement,” it said.
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