Tata Motors - Ropes In A Private Equity Investor In The Electric Vehicle Business: Motilal Oswal
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Tata Motors Ltd. and TPG Rise Climate have entered into a binding agreement, whereby TPG along with its co-investor ADQ (TPG) will invest in the soon to be incorporated electric passenger vehicle business (EVCo) of Tata Motors.
TPG will invest Rs 75 billion in compulsorily convertible preference shares (CCPS) to secure between 11% to 15% stake, implying an equity value of $6.7-9.1 billion.
This investment will be in two equal tranches – first tranche by March 2022 (post the formation of an electric vehicle subsidiary) and the balance by CY22-end (on the operationalisation of the subsidiary).
This CCPS would be converted into equity of the EVCo on achievement of certain revenue thresholds by FY27.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.