Tata Motors secures Rs 7,500 Crore from TPG Rise Climate for EV business
Zee News
The first round of capital infusion is planned to be finished by March 22, with the remaining monies infused by the end of 2022.
New Delhi: Tata Motors Ltd (TML) and TPG Rise Climate have announced the signing of a definitive agreement in which TPG Rise Climate, along with its co-investor ADQ, will invest in a newly created Tata Motors subsidiary. TPG Rise Climate and co-investors will invest Rs 7,500 crore in mandatory convertible instruments to achieve an 11 percent to 15 percent ownership in this company, equating to an equity valuation of up to $9.1 billion.
According to a statement released by Tata Motors, the new company will leverage all of Tata Motors Ltd's existing investments and capabilities, channelling future investments into electric vehicles, dedicated BEV platforms, advanced automotive technologies, and catalysing investments in charging infrastructure and battery technologies. Over the next five years, this business will develop a portfolio of ten electric vehicles and, in collaboration with Tata Power Ltd, will catalyse the development of ubiquitous charging infrastructure to promote rapid EV adoption in India.
N Chandrasekaran, Chairman Tata Motors Ltd commented, “I am delighted to have TPG Rise Climate join us in our journey to create a market-shaping electric passenger mobility business in India. We will continue to proactively invest in exciting products that delight customers while meticulously creating a synergistic ecosystem. We are excited and committed to play a leading role in the Government’s vision to have 30% electric vehicles penetration rate by 2030.” Also Read: Instagram tests a feature that will soon alert users about in-app outages