Shares of Tata Motors jumped over 20 per cent on Wednesday after the company said it would raise USD 1 billion ( ₹7,500 crore) at a valuation of up to USD 9.1 billion from TPG Rise Climate in its Passenger Electric Vehicle (EV) business.
Shares settled at 20.43 per cent higher ₹506.75 on BSE. During the day, it rose 23.56 per cent to a 52-week high ₹519.95.
It jumped 20.44 percent to settle at ₹506.90 on NSE.
The company’s market valuation also jumped ₹to 28,538.6 crores ₹1,68,256.60 crore on BSE.
In terms of trading volume, over 89.05 lakh shares were traded on BSE and over 19.79 crore shares in NSE during the day.
The fund will be used partly to fund the investment of USD 2 billion (more.) ₹16,000 crore) to expand its EV business by a new subsidiary of the company, which includes launching 10 EV models, over the next five years.
Tata Motors Limited (TML) and TPG Rise Climate, the dedicated climate investment strategy of private investment firm TPG, have entered into a binding agreement, under which the latter will invest in a subsidiary of Tata Motors along with its co-investor ADQ. The company said in a statement on Tuesday that it would be newly incorporated.
Co-investors to invest with TPG Rise Climate ₹It said an investment of Rs 7,500 crore would be made in compulsory convertible instruments to acquire an 11-15 per cent stake in the company at an equity valuation of up to US$ 9.1 billion.
ADQ is a strategic partner of the Government of Abu Dhabi and one of the largest holding companies in the region with direct and indirect investments in over 90 companies locally and internationally.
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