The company’s board approved the formation of a new subsidiary that will undertake the electric business in India as the company gears up for competition with Tesla.
Tata Motors also said that the arm will be issuing 50 million A1 compulsorily convertible preference shares and 25 million A2 compulsorily convertible preference shares to TPG Rise for an aggregate of Rs 7,500 crore.
The CCPS will help TPG Rise secure between 11 per cent to 15 per cent stake in the new subsidiary company at an equity valuation of up to $9.1 billion. TPG will be able to pay the nearly $1 billion for its stake in Tata Motors’ new subsidiary Tata EVCo in next 18 months.
“After TML EVCo is incorporated, Tata Motors and TPG Rise Climate will enter into a shareholders’ agreement as a condition precedent to the Proposed Transaction,” Tata Motors said in the filling.
The CCPS will help TPG Rise secure between 11 per cent to 15 per cent stake in the new subsidiary company at an equity valuation of up to $9.1 billion. TPG will be able to pay nearly $1 billion for its stake in Tata Motors’ new subsidiary Tata EVCo in the next 18 months.
“After TML EVCo is incorporated, Tata Motors and TPG Rise Climate will enter into a shareholders’ agreement as a condition precedent to the Proposed Transaction,” Tata Motors said in the filling.
"I am delighted to have TPG Rise Climate join us in our journey to create a market-shaping electric passenger mobility business in India,” said N Chandrasekaran, chairman of Tata Motors.
“We will continue to proactively invest in exciting products that delight customers while meticulously creating a synergistic ecosystem,” Chandrasekaran added.
The company expects the first round of capital infusion to be completed by March 2022 and the entire funds will be infused by end of 2022.
Morgan Stanley and JP Morgan were the joint financial advisors to Tata Motors on the deal, while BofA Securities India was representing TPG Rise Climate for this transaction.
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October 12, 2021 at 06:53PM
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TPG to invest Rs 7,500 cr in Tata Motors EV arm at $9.1 bn valuation - Economic Times
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