TCS Announces Up to ₹18,000 Crore Investment Plan in HyperVault With TPG Backing ₹8,820 Crore

Mumbai, November 21: Tata Consultancy Services (TCS) has announced that it will be investing up to ₹18,000 crore in its AI-focused data center subsidiary HyperVault AI Data Center Ltd. The investment will see backing by global investment firm TPG. The main aim for the combined investment by TCS and TPG is to help TCS in increasing its potential at a time when GW-scale AI-ready infrastructure is expanding in India at a quick pace.

Tata Consultancy Services Ltd (NSE: TCS, BSE: 523540) is the flagship company of the Tata Group and is a global leader in Information Technology (IT) services, consulting, and business solutions. It is one of the world’s largest IT services companies by market capitalisation, operating in 46 countries. The company was established in 1968, and is headquartered in Mumbai, Maharashtra.

Key Transactions Details

TCS and TPG will invest up to ₹18,000 crore in HyperVault AI Data Center Ltd. TCS will contribute through a mix of equity and CCPS. It is expected to hold a majority stake of over 51% after the deal. TPG Terabyte Bidco Pte. Ltd. will invest up to ₹8,820 crore. It will do so through equity and CCPS. After the transaction, TPC will own between 27.5% and 49% in the AI subsidiary. Right now, TCS owns 100% of HyperVault and TPG has no stake. After the transaction is complete, there will be a three-year lock-in period, where both the companies can not sell any share of HyperVault.

Shares Rise by 0.07% at ₹3,147

As of 10:25 AM, TCS share price was up by 0.07%, or 2.20 points, and was trading at ₹3,147. Until now, the shares have traded within a range of ₹3,170 and ₹3,135.20. The traded volume stood at 11.81 lakh shares, with the company’s market cap at ₹11,37,816 crore.

Investor Takeaway for TCS

TCS, together with TPG will invest up to ₹18,000 crore in HyperVault. It is a data center subsidiary that uses AI for operations. The investment will help TCS to expand its AI operations at a time when most IT companies are making their businesses effective by using AI. The investment is a welcome sign for the company and its investors. The investor sentiment for TCS is positive, leading to a share price rise.

REF: https://nsearchives.nseindia.com/corporate/TCS_CORPCS_20112025170749_SE_letter_201125_signed.pdf

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