New Delhi, Oct 13 (FN Agency) In a major green push, Tata Motors would raise US$ 1 billion in its passenger electric vehicle (EV) business at a valuation of upto US$ 9.1 billion from TPG Rise Climate. It is expected that the first round of capital infusion will be completed by March 22 and the entire funds will be infused by end of 2022. Tata Motors and TPG Rise Climate on Tuesday entered into a binding agreement under which TPG Rise Climate along with its co-investor ADQ will invest in a subsidiary of Tata Motors that will be newly incorporated. “TPG Rise Climate along with co-investors shall invest Rs 7,500 crore in compulsory convertible instruments to secure between 11 per cent to 15 per cent stake in this company translating to an equity valuation of up to US$ 9.1 billion,” Tata Motors said in a statement.
The new company shall leverage all existing investments and capabilities of Tata Motors and will channelise the future investments into electric vehicles, dedicated BEV platforms, advanced automotive technologies and catalyse investments in charging infrastructure and battery technologies. “Over the next 5 years, this company will create a portfolio of 10 EVs and in association with Tata Power Ltd, catalyse the creation of a widespread charging infrastructure to facilitate rapid EV adoption in India,” the company said. N Chandrasekaran, Chairman Tata Motors in a statement said that the company will continue to proactively invest in exciting products that delights 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 per cent electric vehicles penetration rate by 2030,” he said. Jim Coulter, Managing Partner TPG Rise Climate and Founding partner of TPG commented, “We are excited to partner with Tata Motors on their mission to lead the electrification of passenger mobility in India.” “There is significant momentum around India’s EV movement, supported by the Government’s vision and policies, as well as growing consumer demand for greener solutions. The investment aligns with TPG Rise Climate’s focus on decarbonized transport and builds on TPG’s long history in India,” stated Coulter.