TATA MOTORS TO RAISE $1 BILLION THROUGH EV BIZ

MUMBAI: The TPG Rise Climate fund will lead a ₹7,500 crore investment in a new company of Tata Motors Ltd that will house the automaker’s passenger electric vehicle business.

TPG Rise, the dedicated climate investing strategy of US private equity firm TPG, and co-investor ADQ will subscribe to compulsory convertible instruments for between 11% and 15% stake in the new company, translating into an equity valuation of up to $9.1 billion for the new company, Tata Motors said in a statement.

The company will be a unit of Tata Motors, and will leverage the automaker’s existing investments and capabilities and channel future investments into electric vehicles, dedicated battery electric vehicle platforms, advanced automotive technologies, and catalyse investments in charging infrastructure and battery technologies, according to the statement.

Over the next five years, this company will create a portfolio of 10 electric vehicles and establish a charging infrastructure across India, in partnership with Tata Power Ltd, to spur the rapid adoption of such ecofriendly vehicles.

“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 a 30% electric vehicles penetration rate by 2030,” said N. Chandrasekaran, chairman, Tata Motors.