Private Equity Group TPG Rise and ADQ to Recharge Tata Motors EV with US$1 Billion
Moneylife Digital Team 12 October 2021
TPG Rise Climate and Abu Dhabi’s ADQ will invest Rs 7,500 crore (around US$1 billion) in Tata Motors' new subsidiary which will make electric vehicles (EV). The investment values 'TML EV Co' close to US$9.1 billion. The investment will be done through a compulsory convertible instrument to secure a 11%-15% stake. The subsidiary will work in synergy with Tata Motors benefiting from its existing infrastructure. The subsidiary will create a portfolio of 10 EVs over the course of next five years as per Tata Motors' statement.
 
The capital infusion will be done in phases; the first round will be completed by March 2022 and the entire fund will be infused by the end of next year. 
 
Jim Coulter, the managing partner of TPG Rise Climate, said that “The investment aligns with TPG Rise Climate’s focus on decarbonized transport and builds on TPG’s long history in India”. 
 
N Chandrasekaran, chairman, Tata Motors Ltd, said: “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 delight 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% electric vehicles penetration by 2030.”
 
TPG Rise Climate was launched in early 2021 and raised close to US$5.4 billion in July 2021 from some of the largest institutional investors and more than 20 global companies. TPG Rise Climate is the dedicated investing strategy of TPG’s global impact investing platform TPG Rise. It pursues climate-related investments that benefit from the diverse skill of TPG’s investing professionals and global network of advisers and executives.
 
This investment will give a boost to the Indian EV industry and help to achieve the target of having EV penetration at 30%. 
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