On March 30, Tata Group’s automobile manufacturing subsidiary, Tata Motors, said that the company has received Rs.3750 crore as the first allotment of investment from TPG Rise Climate, a private equity fund provider that focuses on climate sub-sectors.
Last year, TPG Rise signed an agreement to mortgage an investment of Rs.7500 crore in Tata Motors Electric Mobility Limited, Tata Motors electric vehicle unit.
In a regulatory filing, Tata Motors said, “Pursuant to the Agreement, TPG has subscribed to 3, 75,00,000 compulsorily convertible preference shares of the face value of Rs 1,000/- each in the subsidiary on March 30, 2022, for an aggregate consideration of Rs 3,750,00,00,000 as the first tranche of the proposed transaction.”
In particular, TPG Rise with co-investor Abu Dhabi’s ADQ values the new electric vehicle unit of Tata Motors at $9.1 billion and is ranked India’s most valued company in the electric vehicle segment. As India’s leading automotive manufacturer, Tata Motors is aimed to focus on eco-friendly electric vehicles in the forthcoming years and is expected to introduce at least seven new electric vehicles by the fiscal year 2026.
Tata Motors has introduced its two electric vehicle models, Nexon and Tigor, and is leading India’s electric vehicle segment. With just these two electric vehicle models, the company has covered two-thirds of the market share. In the financial year 2021, the company has generated Rs. 500-600 crore through the electric vehicle market.