Shares of Tata Motors in early trade in a record high market hit a fresh 52-week high surging as much as 19 percent. This is on reports that the private equity entity TPG Group will be investing Rs. 7500 crore in the firm's EV business.
The company's investments into Tata's subsidiary shall be made in tranches in 1.5 years from the date of completion of the first tranche, said Tata Motors in a statement.
TML EVCo, the entity set up by Tata Motors for the electric vehicles segment, will undertake passenger electric mobility business, the company said. The first round of capital infusion is expected to be completed by March 22 and the entire funds will be infused by the end of 2022, it said.
"I am delighted to have TPG Rise Climate join us in our journey to create a market-shaping electric passenger mobility business in India. We will continue to proactively invest in exciting products that delight customers while meticulously creating a synergistic ecosystem. We are excited and committed to play a leading role in the government's vision to have 30 percent electric vehicles penetration rate by 2030," Tata Motors Chairman N Chandrasekaran said.
Meanwhile, on the group's brand equity some of the other counters of Tata including Tata Investment, TCS all recorded gains of up to more than 10 percent intra-day.