Tata Motors receives first tranche of investment of Rs3750 crore from TPG Rise

31 Mar 2022 , 10:44 AM

Tata Motors Limited informed the exchanges Wednesday that TPG RISE Climate TopGun Pte. Ltd. has subscribed to 3.75 crore Compulsorily Convertible Preference Shares of the face value of Rs1,000/- each in the Subsidiary on March 30, 2022, for an aggregate consideration of Rs3750 crore as the first tranche of the agreement.

The Board of Directors of the Subsidiary has, on March 30, 2022, accorded its approval for the allotment of the Tranche I Investor Securities to TPG as per the terms and conditions of the Proposed Transaction.

Tata Motors had executed a Securities Subscription Agreement (SSA) dated October 12, 2021, with TPG Rise, a private equity fund, for a potential investment aggregating to Rs7,500 crore (Proposed Transaction) and incorporation of a wholly owned subsidiary of the Company, viz., Tata Passenger Electric Mobility Limited.

At around 10.47 am, Tata Motors Ltd was trading at Rs437.80 per share up by Rs2.15 or 0.49% from its previous closing of Rs435.65 per share on the BSE.