Tata Motors has received the second and final tranche of investment from private equity fund TPG Rise Climate TopGun Pte totalling Rs 3750 crore.
The automaker said that TPG has subscribed to compulsorily convertible preference shares in its subsidiary Tata Passenger Electric Mobility (TPEML). Tata Motors has more than 85% market share of India’s passenger electric vehicle market.
“With the subscription of the Tranche II Investor Securities by TPG, the entire investment aggregating to `7,500 crore as contemplated to be invested by TPG under the agreement, has been received by the subsidiary,” Tata Motors added.
TPG’s first tranche `3750 crore was received by Tata Motors in March 2022. Tata Motors had in 2021 announced that TPG and its co-investor ADQ would invest `7,500 crore in compulsory convertible instruments to secure between 11% and 15% stake in its new EV company.
The deal, which was signed in October 2021, made TPEML the most valued EV company in India, having a valuation of $9.1 billion. The company presently has three products — Nexon, Tiago and Tigor — in its lineup but will progressively add at least six more in the next 2-3 years.
In May 2022, TPEML and Ford India signed an MoU with Gujarat for the potential acquisition of the latter’s plant. It completed the acquisition in January which gives the group access to an installed capacity of 300,000 units per annum, scalable to more than 400,000 units.