Auto major Tata Motors has received the first tranche of investment of INR 3500 crore from private equity fund TPG Rise for its EV subsidiary, Tata Motors Electric Mobility Ltd.
“We hereby wish to inform you that pursuant to the Agreement, TPG has subscribed to 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,” the automaker said in a regulatory filing.
The recent investment is part of the USD 1 billion (INR 7,500 crore) investment for the company’s passenger EV business from TPG Rise Climate at a valuation of up to USD 9.1 billion. Tata Motors had announced the investment plan in October last year.
According to the announcement made by the automaker last year, TPG along with ADQ of Abu Dhabi will invest in the electric subsidiary of Tata Motors. It also said that TPG Rise Climate along with co-investors would secure between an 11%-15% per cent stake in the new subsidiary.
ADQ is a strategic partner of the Abu Dhabi government and is one of the region’s largest holding companies with direct and indirect investments in more than 90 companies locally and internationally.
The automaker is the market leader in the electric passenger vehicle segment offering models like Nexon EV and Tigor EV. It is further planning to invest INR 15,000 crore in the EV segment in the next five years.