Tata Motors to raise $1 bn from TPG Group

TPG Rise Climate, along with co-investors, will 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 $9.1 bn.

Tata Motors Ltd (TML) and TPG Rise Climate have today entered into a binding agreement whereby TPG Rise Climate, along with its co-investor ADQ, will invest in a subsidiary of Tata Motors that will be newly incorporated. The first round of capital infusion will be completed by March 22 and the entire funds will be infused by end of 2022, Jim Coulter, Managing Partner, TPG Rise Climate and Founding partner of TPG, said.

TPG Rise Climate, along with co-investors, will 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 $9.1 bn.

The new company will leverage all existing investments and capabilities of Tata Motors Ltd 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.