Tata Motors raises $1 billion for its electric vehicle business

Pratik Rakshit, New Delhi

Tata Motors announced its plan to convert its electric vehicle business into a subsidiary and raise $1 billion from TPG Rise Climate along with its co-investor ADQ for an 11 to 15 per cent stake, which translates to a valuation of up to $9.1 billion for the new entity. The new EV subsidiary from Tata Motors will receive an initial investment of Rs 7,500 crore. Over the next 5 years, this new entity will create a portfolio of 10 EVs and, in association with Tata Power Ltd, catalyze the creation of widespread charging infrastructure to facilitate rapid EV adoption in India.

N Chandrasekaran, Chairman of Tata Motors Ltd said, “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 playing a leading role in the government’s vision to have a 30 per cent electric vehicle penetration rate by 2030.”

It is expected that the first round of capital infusion will be completed by March 2022, and the entire funds will be infused by end of 2022. Morgan Stanley and JP Morgan are the joint financial advisors to TML, while BofA Securities India Ltd are representing TPG Rise Climate for this transaction.

Source: India Today

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About Cholo Brooks 15575 Articles
Joel Cholo Brooks is a Liberian journalist who previously worked for several international news outlets including the BBC African Service. He is the CEO of the Global News Network which publishes two local weeklies, The Star and The GNN-Liberia Newspapers. He is a member of the Press Union Of Liberia (PUL) since 1986, and several other international organizations of journalists, and is currently contributing to the South Africa Broadcasting Corporation as Liberia Correspondent.

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