Tata Motors To Raise $1B In Passenger Electric Vehicle Business

Tata Motors Limited TTM to raise about $1 billion in its passenger electric vehicle business via investments from TPG Rise Climate and co-investor ADQ.
The investments will be made in a subsidiary of Tata Motors, which will be newly incorporated. The investors will invest in compulsory convertible instruments to secure an 11% - 15% stake in this company, translating to an equity valuation of up to $9.1 billion.
Over the next five years, the newly incorporated company will create a portfolio of 10 EVs and, in association with Tata Power Ltd., catalyze the creation of widespread charging infrastructure to facilitate rapid EV adoption in India.
The company expects the first round of capital infusion to be completed by March 2022, with entire funds by 2022-end.
Price Action: TTM shares are trading higher by 12.4% at $31.55 on the last check Tuesday.