Homegrown auto major Tata Motors informed the exchanges Wednesday that it has received an investment of ₹3750 crore from private equity fund TPG Rise for its EV subsidiary Tata Motors Electric Mobility Ltd.
This is the first tranche of the $1 billion or ₹7500 crore investment that the climate-focussed fund had announcement it will make it Tata Motors’ electric mobility subsidiary last year, which it valued at close to $9 billion.
TPG has subscribed to 3,75,00,000 compulsorily convertible preference shares of face value of ₹1000 each in the subsidiary.
Since the announcement of TPG’s strategic investment, Tata Motors’ passenger vehicle business has gained significant weight in the street’s valuation of the Tata Motors business. It now accounts for 30% weight in the stock’s target price.