Tata Motors Ltd. said it has received the first tranche of Rs 7,500 crore investment for its new passenger electric vehicle subsidiary from TPG Rise Capital.
TPG has subscribed to 3.75 crore compulsorily convertible preference shares of the face value of Rs 1,000 each in the subsidiary on March 30 for an aggregate consideration of Rs 3,750 crore, the company said in an exchange filing on Wednesday.
The maker of Nexon compact SUV had announced in October last year that the investors, including ADQ, will pump the funds into TML EV Co. through compulsory convertible instruments for an 11-15% stake in the newly incorporated unit, giving it the equity valuation of up to $9.1 billion.
The new arm is set to create a portfolio of 10 electric vehicles over the next five years.
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