Tata Motors on Tuesday said it has raised the second and final tranche of Rs 3,750 crore from TPG Rise Climate as per an agreement inked in 2021.
In October 2021, Tata Motors announced that it will raise USD 1 billion in its passenger Electric Vehicle (EV) business from TPG Rise Climate in exchange for compulsorily convertible preference shares to create a portfolio of EVs and dedicated Battery Electric Vehicle (BEV) platforms.
Tata Motors and TPG Rise Climate entered into a binding agreement under which TPG along with its co-investor ADQ to invest in a subsidiary of Tata Motors.
“…pursuant to the Agreement, TPG has subscribed to 3,75,00,000 compulsorily convertible preference shares of the face value of Rs 1,000 each in the subsidiary on January 31, 2023, for an aggregate consideration of Rs 37,50,00,00,000 as the second tranche of the transaction,” Tata Motors said in a regulatory filing.
With the subscription of the Tranche II Investor Securities by TPG, the entire investment aggregating to Rs 7,500 crore as contemplated to be invested by TPG under the agreement, has been received by the company subsidiary, it added.
On Tuesday, shares of Tata Motors settled 1.94 per cent up at Rs 452.15 apiece on the BSE.
