Tata Motors shares jumped over 19 percent on Wednesday after the company said it will raise $1 billion (Rs 7,500 crore) in its passenger electric vehicle (EV) business from TPG Rise Climate at a valuation of up to $9.1 billion.
The stock zoomed 19.29 per cent to its 52-week high of Rs 502 on BSE. It jumped 19.49 per cent to its 52-week high of Rs 502.90 on NSE.
At 12.26 PM, the stock was up Rs 75.55 at Rs 496.40 on the BSE. On the NSE, the stock was up Rs 76.16 at Rs 497 per share.
The fund will be used to partly fund investment of $2 billion (over Rs 16,000 crore) in the next five years by a new subsidiary of the company for expanding its EV business, including launching of 10 EV models.
Tata Motors Ltd (TML) and TPG Rise Climate, the dedicated climate investing strategy of private investment firm TPG, have entered into a binding agreement, under which the latter along with its co-investor ADQ, will invest in a subsidiary of Tata Motors that will be newly incorporated, the company said in a statement on Tuesday.
TPG Rise Climate along with co-investors shall invest Rs 7,500 crore in compulsory convertible instruments to secure between 11-15 per cent stake in this company translating to an equity valuation of up to $9.1 billion, it added.
ADQ is a strategic partner of Abu Dhabi's government and is one of the region's largest holding companies with direct and indirect investments in more than 90 companies locally and internationally.
(To receive our E-paper on WhatsApp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper's PDF on WhatsApp and other social media platforms.)
