Tata Motors, the Indian carmaker is in talks with a US-based private equity company 'TPG' (Texas Pacific Group) to raise $1 billion or more for its EV business. The home-grown automaker plans to do so through stock sale of its EV unit, and it has also got approval from its shareholders. According to a report from Economic Times, TPG's proposed investment with Tata Motors could also go up to $8-9 billion and the final deal amount is yet to be revealed by the company. Tata Punch SUV Unveiled in India; Check Bookings, Expected Prices & Specifications.
The company has been building EV vehicles at a decent pace and now has become the largest EV maker in the passenger vehicle division. This has enticed many equity private funds from middle-east, the US and Southeast Asia such as California Public Employees’ Retirement System, TPG and Temasek, to invest in Tata's EV business. To do so, these companies have also reportedly held meetings with the Tata Group.
In July, Tata Motors Chairman N Chandrasekaran had addressed its shareholders that the EV maker will look for financial aid for its EV business and expects that at least 25 percent of total PV sales will come from the electric division. Current EV portfolio of Tata Motors include Nexon EV, Tigor EV and Xpres-T. The company also plans to release 10 EV models before 2025. As such, it will look to raise capital at an appropriate time.
(The above story first appeared on LatestLY on Oct 08, 2021 01:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).