TPG Rise Climate will invest $1 billion in Tata Motors’ passenger electric vehicle division

Tata Motors, India’s largest automaker, said on Tuesday that it will receive $1 billion (Rs 7,500 crore) from TPG Rise Climate for its passenger electric car business, valued at up to $9.1 billion.

TPG Rise Climate and Tata Motors Ltd (TML) have signed a binding agreement under which TPG Rise Climate and its co-investor ADQ would participate in a newly established Tata Motors subsidiary, according to the firm.

TPG Rise Climate and co-investors would invest Rs 7,500 crore in forced convertible instruments to obtain an 11-15 percent interest in the firm, valuing it at up to $9.1 billion, according to the statement.