TPG Group invests Rs 7,500 Cr in Tata Motors new EV subsidiary

Tata Motors announced that a private equity firm TPG Group would be investing Rs 7,500 crore in the new incorporated wholly-owned subsidiary of Tata Motors for electric mobility. The investment will be made in phases over a period of 18 months from the date of completion of the first phases. Let us now read more about TPG Group invests in Tata Motors.

The company said that the TML EVCo, the entity made by Tata Motors for the electric vehicles segment will undertake the passenger electric mobility business. Tata Motors said that it will be issuing 50 million A1 compulsorily convertible preference shares and 25 million A2 compulsorily convertible preference shares to TPG Rise for an aggregate of Rs 7,500 crore.

The TPG Climate and its co-investors will secure between 11% to 15% stake in Tata’s newly incorporated EV subsidiary. The first round of capital infusion will be completed by March 22 and the entire funds will be infused by end of 2022. It will be able to pay nearly $1 billion for its stake in Tata Motors new subsidiary.

Tata Motors Chairman N Chandrasekaran said that “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 play a leading role in the Government’s vision to have a 30% electric vehicles penetration rate by 2030. In the next five years, the company will create a portfolio of 10 EVs and in association with Tata Power Ltd.”

Jim Coulter, Managing Partner TPG Rise Climate and Founding partner of TPG, said, “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.”

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