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Tuesday, October 19, 2021

TPG Rise, ADQ to invest $1 billion in Tata Motors EV unit

TPG Rise Climate along with co-investors will invest 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 $9.1 billion.

By: ENS Economic Bureau | Mumbai |
October 13, 2021 3:30:00 am
N Chandrasekaran, Chairman, Tata Motors

Tata Motors Ltd (TML) and TPG Rise Climate on Tuesday entered into a binding agreement whereby TPG Rise Climate along with its co-investor ADQ of Abu Dhabi have proposed to invest $1 billion (Rs 7,500 crore) in the proposed electric mobility subsidiary of Tata Motors.

TPG Rise Climate along with co-investors will invest 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 $9.1 billion.

The new electric vehicle (EV) company will 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, catalyse the creation of a widespread charging infrastructure to facilitate rapid EV adoption in India.

The electric vehicle subsidiary will invest in excess of Rs 16,000 crore over the next 5 years in products, platforms, drive trains, dedicated EV manufacturing, charging infrastructure and advanced technologies.

N Chandrasekaran, Chairman Tata Motors, 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 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.”

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