Indian automaker Tata Motors has received ₹3,750 crore from American investment firm TPG Rise Climate, which is the second tranche of investment for its electric vehicle business.
The company informed in a stock exchange filing that with the second tranche, the overall investment of ₹7,500 crore is completed. The first tranche of ₹3,750 crore was received in March 2022.
The investment was done over 18 months and pegged Tata Motors Electric Mobility Ltd at $9.1 billion. “With the subscription of the Tranche II Investor Securities by TPG, the entire investment aggregating to ₹75,00,00,00,000 as contemplated to be invested by TPG under the Agreement, has been received by the Subsidiary. According to the aforesaid, the allotment committee of the board of the subsidiary has on January 31, 2023, accorded its approval for the allotment of the Tranche II Investor Securities to TPG as per the terms and conditions of the transaction,” mentioned the stock exchange filing.
Tata Motors is presently a market leader in the electric vehicle segment and has a market share of 85 per cent. The EV segment for the company witnessed a 130 per cent growth year-on-year and with CNG contributing 17 per cent of the passenger vehicle shares.
The company had earlier stated that over the next five years it plans to create an electric vehicle portfolio of 10 EVs in association with Tata Power and catalyse the creation of widespread charging infrastructure to facilitate rapid EV adoption in India