Tata Motors Gets First Tranche Of Investment Of Rs. 3,750 Crore From TPG For EV Business

Indian auto giant Tata Motors has received its first tranche of investment of Rs. 3,750 crore from private equity fund TPG Rise Climate TopGun Pte Ltd. for its new electric vehicle business, Tata Motors Electric Mobility Ltd. This is the first half of the total investment of Rs. 7,500 crore under the proposed transaction at a valuation of $9.1 billion, the company said in its announcement. Tata Motors had announced the plant for investment in October last year, which included TPG and ADQ of Abu Dhabi, both of which will invest in the electric subsidiary of the company.

Also Read: TPG Rise Climate, ADQ To Invest ₹ 7,500 Crore In Tata Motors New EV Unit

The Tata Tigor EV is the company's entry-level electric offering and has helped the company strengthen its market share in the EV space

"We hereby wish to inform you that pursuant to the Agreement, TPG has subscribed to Rs. 3,75,00,000 Compulsorily Convertible Preference Shares of the face value of INR 1,000/- each in the Subsidiary ("Tranche I Investor Securities") on March 30, 2022, for an aggregate consideration of 3750,00,00,000/- as the first tranche of the Proposed Transaction," Tata Motors said in its regulatory filing.

As part of the agreement, TPG, along with the other investors will secure an 11-15 per cent stake in Tata Motors Electric Mobility Ltd. ADQ is a strategic partner of the Abu Dhabi government, and has direct and indirect investments in over 90 companies locally and globally. It is one of the largest holding companies in the region.

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Tata Motors is currently dominating the passenger electric mobility segment with the Nexon EV and the Tigor EV, both of which have been well accepted in the market. The company plans to invest an additional Rs. 15,000 crore in the EV space in the next five years. Tata is now gearing up to introduce a new electric vehicle in the country on April 6, 2022, and has already dropped the first teaser for the same on its social media handles.