InvestorQ : How does the TPG investing in Tata Motors EV business impact the stock price?
vidhya Laxmi made post

How does the TPG investing in Tata Motors EV business impact the stock price?

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sarah Leo answered.
2 months ago
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This deal was on the cards for some time now and a final announcement has been made by Tata Motors on Tuesday. TPG, one of the world’s leading private equity investors, will invest Rs.7,500 crore, or nearly $1 billion, in the electrical vehicles (EV) subsidiary of Tata Motors. The investment will be made in tranches over 18 months and the infusions will commence in 2022 and will also be completed in the year 2023.

In exchange, TPG gets 11% stake in the EV business of Tata Motors. This will value the EV business at $9.1 billion approximately. It has been reported that some sovereign funds had also been in contention for the deal. Tatas aim to enhance the EV composition in the overall automobile mix from current 2% to 25% over next few years. Interestingly, Maruti continues to be sceptical about the EV opportunity on grounds of feasibility and sustainability.

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