Tata Motors announced on Tuesday that TPG Group, a private equity firm and Abu Dhabi's ADQ will invest Rs 7,500 crore in its electric vehicle entity, which will be newly incorporated.
The entire investment will be made in different tranches over an 18-month period, starting from the date of completion of the first tranche.
The first instalment of capital infusion will be done by March 2022 while the entire process will be completed by end of 2022.
Tata will incorporate a separate electric mobility unit in which TPG and ADQ will get between 11 per cent and 15 per cent stake at an equity valuation of $9.1 billion.
“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. We are excited and committed to play a leading role in the Government's vision to have 30 per cent electric vehicles penetration rate by 2030," Tata Motors Chairman N Chandrasekaran said.
Apart from Tata Motors foray in the electric vehicle business, Mahindra & Mahindra had also announced that it will invest Rs 3,000 crore in the next three years to build an electric vehicle vertical.
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