TPG to invest $1 billion in Tata Motors' electric vehicle subsidiary

The EV business in the commercial vehicles segment will remain with the parent company and is out of the purview of this deal

In a boost to its electric vehicle (EV) push, Tata Motors on Tuesday closed a deal to raise Rs 7,500 crore from TPG Rise Climate and Abu Dhabi’s ADQ. This is the first major fundraising by an Indian carmaker to push clean mobility.

The investment will be in a newly formed subsidiary Tata Motors has formed for the EV business. The Rs 7,500 crore (close to $1 billion) will give a stake of 11-15 per cent stake to the TPG-ADQ combine in this subsidiary.

Bank of America was the advisor to TPG Rise Climate, and Morgan Stanley and JP Morgan have advised