TPG Rise Climate and ADQ to invest INR 7,500 crore in Tata Motors’ EV subsidiary

Representational Purpose

TPG Rise Climate—a new clean energy investment firm led by TPG Capital co-founder James Coulter, has announced that it along with ADQ (Abu Dhabi holding company) will invest INR 7,500 crore in an upcoming Tata Motors subsidiary that’ll focus on electric vehicles. The two investors are expected to secure between 11% to 15% stake in this company, translating to an equity valuation of up to US$ 9.1 billion.

The new company shall leverage all existing investments and capabilities of Tata Motors and will channelize the future investments into electric vehicles, dedicated BEV platforms, advanced automotive technologies and catalyze investments in charging infrastructure and battery technologies.

The joint press release added that the new company will have a portfolio of 10 EVs and will be supported by the sister company Tata Power to create a widespread charging infrastructure to facilitate rapid EV adoption in India.

I am delighted to have TPG Rise Climate join us in our journey to create a market-shaping electric passenger mobility business in India. We will continue to proactively invest in exciting products that delight customers while meticulously creating a synergistic ecosystem. We are excited and committed to play a leading role in the Government’s vision to have a 30% electric vehicles penetration rate by 2030. – N Chandrasekaran, Chairman, Tata Motors

We are excited to partner with Tata Motors on their mission to lead the electrification of passenger mobility in India. There is significant momentum around India’s EV movement, supported by the Government’s policies, as well as growing consumer demand for greener solutions. The investment aligns with TPG Rise Climate’s focus on decarbonized transport and builds on TPG’s long history in India. – Jim Coulter, Founding & Managing Partner, TPG Rise Climate

The first round of capital infusion is expected to be completed by March 2022 and the entire funds will be infused by the end of 2022. Morgan Stanley and JP Morgan are the joint financial advisors to TML, while BofA Securities India is representing TPG Rise Climate for this transaction.

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