New Delhi, Mar 30 (PTI) Tata Motors on Wednesday said TPG Rise Climate has subscribed to 3.75 crore compulsorily convertible preference shares worth Rs 3,750 crore as the first tranche of the proposed investment of Rs 7,500 crore in its passenger electric vehicle business.

Last year in October, Tata Motors had announced that it would raise USD 1 billion (Rs 7,500 crore) for its passenger electric vehicle business from TPG Rise Climate at a valuation of up to USD 9.1 billion.

Also Read | CCPA Penalizes 3 Companies for Misleading Advertisements.

Tata Motors Ltd (TML) and TPG Rise Climate, the dedicated climate investing strategy of the private investment firm TPG, had entered into a binding agreement under which TPG Rise Climate along with its co-investor ADQ would invest in a newly incorporated subsidiary of the automaker.

Pursuant to the agreement, TPG has subscribed to 3.75 crore compulsorily convertible preference shares of the face value of Rs 1,000 each in the subsidiary -- Tata Passenger Electric Mobility Ltd -- on March 30, 2022, for an aggregate consideration of Rs 3,750 crore as the first tranche of the proposed transaction, the company said in a regulatory filing.

Also Read | DRDO Recruitment 2022: Apply For 8 Research Vacancies at drdo.gov.in; Check Details Here.

As per the announcement made by Tata Motors last year, TPG Rise Climate along with co-investors would secure between 11-15 per cent stake in the new subsidiary.

ADQ is a strategic partner of Abu Dhabi government, and is one of the region's largest holding companies with direct and indirect investments in more than 90 companies locally and internationally.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)