Tata Motors Ltd (TML) and TPG Rise Climate, the dedicated climate investing strategy of private investment firm TPG, have entered into a binding agreement in this regard.
Under the agreement, TPG Rise Climate along with its co-investor ADQ, will invest in a subsidiary of Tata Motors that will be newly incorporated, the company said in a statement.
TPG Rise Climate along with co-investors shall invest Rs 7,500 crore in compulsory convertible instruments to secure between 11- 15 per cent stake in this company translating to an equity valuation of up to $9.1 bn, it added.
ADQ is a strategic partner of Abu Dhabi’s government and is one of the region’s largest holding companies with direct and indirect investments in more than 90 companies locally and internationally.
Tata Motors Chairman N Chandrasekaran said,”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 delights customers while meticulously creating a synergistic ecosystem.”
He further said the company is “committed to playing a leading role in the government’s vision to have 30 per cent electric vehicles penetration rate by 2030.”