Private Equity

Private Equity Fund Investments

TPG, ADQ invest $1-B in Tata Motors' electric vehicle unit

BSE Disclosure  

Private Equity firm TPG Growth (via TPG Rise Climate) along with its co-investor ADQ, are to invest INR 7,500 crore, in tranches, in a newly incorporated subsidiary of publicly listed Tata Motors Ltd (TML) that will house the Mumbai-based's auto maker's passenger Electric Vehicles (EV) business. The deal, structured via compulsory convertible instruments (CCPS), will fetch the investors between 11-15% stake in the EV unit, imputing an equity valuation of up to USD 9.1 billion. The new company shall leverage all existing investments and capabilities of Tata Motors Ltd and will channelise the group's future investments into electric vehicles, advanced automotive technologies and catalyse investments in charging infrastructure and battery technologies. Over the next 5 years, this company will create a portfolio of 10 EVs and in association with Tata Power Ltd, catalyse the creation of a widespread charging infrastructure in India. Morgan Stanley and JP Morgan are the joint financial advisors to TML on the deal, while BofA Securities India Ltd are representing TPG Rise. Khaitan & Co. is the legal advisor to TML, while Shardul Amarchand Mangaldas, Cleary Gottlieb are the legal advisors to TPG Rise.