Tata Tech Shares Gain on €75M German Automotive Acquisition

Tata Technologies Ltd. ROSE 1.26% to ₹710.95 in Mumbai trading after announcing the strategic purchase of Germany's ES-Tec Group for €75 million. The engineering firm's Singapore subsidiary will acquire 100% of the Wolfsburg-based automotive specialist in an all-cash deal with performance-linked earnouts.

ES-Tec brings expertise in Advanced Driver Assistance Systems (ADAS) and connected vehicle technologies, having generated €36 million revenue last year. The acquisition positions Tata Technologies at the heart of Germany's automotive R&D ecosystem, with the transaction expected to become EPS-accretive within its first operational year.

While JP Morgan maintains its Underweight rating, market response was positive with shares touching an intraday high of ₹720.75 on heavy volume. The MOVE underscores Indian firms' growing appetite for European tech capabilities as automotive sectors converge with digital transformation trends.