TPG to invest Rs 7,500 cr in Tata Motors EV arm at $9.1 bn valuation

Tata Motors NSE 1.23 percent said in an exchange filing that TPG Rise would invest Rs. 7,500 crore in a newly created wholly-owned subsidiary for electric mobility business.

As the corporation prepares to compete with Tesla, the board of directors approved the formation of a new subsidiary that will handle the electric business in India.

TPG Rise would receive 50 million A1 compulsorily convertible preference shares and 25 million A2 compulsorily convertible preference shares from Tata Motors for a total of Rs 7,500 crore, according to the company.

The CCPS will assist TPG Rise in acquiring a 10% to 15% interest in the new subsidiary firm, with an equity value of up to $9.1 billion. In the following 18 months, TPG will pay approximately $1 billion for its investment in Tata Motors’ new company Tata EVCo.

Morgan Stanley and JP Morgan acted as joint financial advisors to Tata Motors on the sale, while BofA Securities India represented TPG Rise Climate.