Tata Motors will raise 1 1 billion (Rs 7,500 crore) in the passenger electric vehicle business from TPG Rise Climate. The amount will be increased based on business valuations up to $ 9.1 billion. The company said in a statement that Tata Motors Limited and TPG Rise Climate have entered into a binding agreement.
TPG Rise Climate and its co-investor ADQ will invest in a subsidiary of Tata Motors that will be newly incorporated.
Moreover, co-investors, including TPG Rise Climate, will invest Rs 7,500 crore in mandatory convertible instruments for an 11 to 15 per cent stake in the company, which would translate into an equity valuation of up to 1 9.1 billion.
According to Tata Motors, the new company will leverage all of Tata Motors’ existing investments and capabilities and inspire future investments in electric vehicles, dedicated ‘BEV’ platforms, advanced automotive technology and charging infrastructure, and battery technology.
According to Tata Motors Chairman N Chandrasekharan: “I am delighted to have TPG Rise Climate join us on our journey to build a market-shaped electric passenger transport business in India.
“We will continue to actively invest in exciting products that make customers happy while creating a subtly integrated ecosystem. We are excited and committed to play a leading role in the government’s vision of electric electric vehicles by 2030. ”
It is expected that the first phase of funding will be completed by March 2022 and the full funding will be added by the end of 2022.
The automobile major said the transaction was subject to preconditions and formal approval.
(Input from IANS)
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