TPG Rise to invest Rs 7,500 crore in Tata Motors' EV business; Details here

TPG Rise Climate and Tata Motors Ltd signed a formal agreement on Tuesday under which TPG Rise Climate and its co-investor ADQ would participate in a newly formed Tata Motors subsidiary. TPG Rise Climate and co-investors will spend Rs 7,500 crore in convertible instruments to gain an 11 per cent to 15 per cent stake in this company, corresponding to a $9.1 billion equity valuation.

According to the company's statement, the new arm will leverage all of Tata Motors Ltd's existing investments and capabilities. It would include future channel investments into electric vehicles, dedicated battery electric vehicle platforms, advanced automotive technologies, and catalyze investments in charging infrastructure and battery technologies. Over the next five years, this business will develop a portfolio of ten EVs. According to the company, in collaboration with Tata Power Ltd, it will stimulate the development of widespread charging infrastructure to allow fast EV adoption in India.

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Tata Motors Ltd Chairman N Chandrasekaran stated that they are happy to have TPG Rise Climate and would continue to aggressively delight innovative products that delight consumers while painstakingly establishing a synergistic ecosystem. He went on to say that they were dedicated to playing a major role in the government's objective of reaching a 30 per cent electric car adoption rate by 2030.

The first round of capital infusion is anticipated to be finished by March 22, with the remaining monies infused by 2022. TML's financial advisers are Morgan Stanley and JP Morgan, while BofA Securities India Ltd represents TPG Rise Climate in this transaction.
TML's legal advisers for the deal are Khaitan & Co, Shardul Amarchand Mangaldas & Co, and Cleary Gottlieb. TPG Rise's legal advisors are Khaitan & Co, Shardul Amarchand Mangaldas & Co, and Cleary Gottlieb.
The acquisition is subject to prior conditions and customary approvals.

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