Tata Motors to raise Rs. 7,500 crore in its EV subsidiary

Tata's new EV subsidiary will launch 10 EVs over the next 5 years.

TPG Rise Climate, along with co-investor ADQ will invest Rs. 7,500 crore in Tata Motors' electric vehicle business.

TPG Rise Climate and its co-investors will secure between 11% to 15% stake in Tata's newly incorporated EV subsidiary, translating to an equity valuation of up to US$ 9.1 billion.

The new company will leverage all existing investments and capabilities of Tata Motors Ltd. The company will channelize the future investments into electric vehicles, dedicated BEV platforms and advanced automotive technologies. It will also make strides to develop charging infrastructure and battery technologies.

Tata's new EV subsidiary will launch 10 EVs over the next 5 years. The company will collaborate with Tata Power Ltd. to set up charging infrastructure to facilitate rapid EV adoption in India.

The first round of capital infusion is expected to be completed by March 2022, and the entire fund will be infused by the end of next year.