TCS Dilutes HyperVault Stake as TPG Injects ₹199 Crore into AI Data Center Venture

New Delhi: Tata Consultancy Services (TCS) has announced that its subsidiary HyperVault AI Data Center Limited has ceased to be a wholly owned subsidiary after global investment firm TPG Terabyte Bidco Pte. Ltd. acquired a 49% stake in the company.

The development follows the completion of conditions outlined in the Securities Subscription Agreement and Shareholders’ Agreement signed in November 2025. On March 9, 2026, TPG Terabyte subscribed to shares in HyperVault, resulting in the allotment of equity shares and compulsory convertible preference shares.

As part of the transaction, HyperVault received an investment of approximately ₹199.36 crore from TPG Terabyte. The investment was made through the subscription of 2,70,000 equity shares, 70,53,530 Class A compulsory convertible preference shares, and 1,26,12,745 Class B compulsory convertible preference shares, each with a face value of ₹100.

Following the allotment, TPG Terabyte now holds 49% of HyperVault’s total paid-up share capital on a fully diluted basis, reducing TCS’s stake and resulting in HyperVault no longer being a wholly owned subsidiary of the IT services major.

HyperVault, incorporated on October 29, 2025, is focused on building AI data center infrastructure. As of December 31, 2025, the company had a net worth of ₹208.38 crore, though it had not yet generated revenue during the initial months since incorporation.

TCS clarified that the investment amount was received directly by HyperVault and that the company itself did not receive any direct consideration from the transaction. The deal also does not qualify as a related-party transaction.

The investment by TPG reflects growing global interest in AI infrastructure and data center capabilities, with technology companies increasingly partnering with private equity investors to scale digital infrastructure required for artificial intelligence workloads.

TCS stated that the information has been disclosed to stock exchanges in compliance with Regulation 30 of the SEBI Listing Regulations.