Tata Motors jumps 10% as co to raise $1 billion for passenger EV business

NEW DELHI: Shares of surged close to 10 per cent to hit its upper circuit limit in early trading in Mumbai on Wednesday as the auto major said it will raise $1 billion for its passenger electric vehicle business from TPG Rise Climate at a valuation of up to $9.1 billion.

At 09:25 hours (IST), shares of Tata Motors were at Rs 462.90 on the National Stock Exchange, up 9.9% from previous close.

On Tuesday, Tata Motors closed a transaction to raise Rs 7,500 crore from Abu Dhabi-based ADQ and TPG Rise Climate, marking the first large financing plan by a domestic automaker to boost clean mobility.

The investment is planned to be through a newly formed subsidiary that Tata Motors has created for the electronic vehicle business and TPG-ADQ will hold a stake of 11-15 per cent.

Tata Motors shares have seen a massive jump since last month. In October itself, the stock is up 39 per cent so far. The rally has been on account of the company showing a record orderbook and speculation of the company purchasing Ford’s manufacturing plant in Chennai.