Tata Motors shares up 19%- TPG to invest in EV business- Tata Motors shares have seen a rise of about 19 percent in today’s early trading on October 13. According to media reports, a private equity firm TPG Group will invest Rs 7,500 crore in the company’s wholly-owned electric vehicle subsidiary. Due to this news, this stock has gained momentum.
The stock of Tata Motors touched its 52-week high of Rs 499.95, up by Rs 63.85, or 15.17 percent, around 10.08 am today.
Let us tell you that Tata Motors, one of the world’s largest automobile companies, on Tuesday announced an investment of Rs 7,500 crore in its new electric vehicle subsidiary of private equity firm TPG. The investment will be made in installments over a period of 18 months. Tata Motors has created a new unit TML EVCo for the electric vehicle segment.
The company has said that the first round of investment will be completed by March next year. TPG will get an 11-15 percent stake in this unit at a valuation of around $9.1 billion.
Brokerage houses are also bullish on this investment in Tata Motors. HSBC has given a buy rating on TATA MOTORS and has a fixed target of Rs 550 for the stock from Rs 340. TPG’s investment has come at a value of $6.7-9.1 billion in the EV business, he says. TPG invested $1 billion. At the same time, due to less competition, support is possible from EV volume. EV value has been included in its target.
On the other hand, NOMURA has also upgraded the rating on TATA MOTORS from neutral to buy rating and has set a target of Rs 547. He says that the passenger has been upgraded due to the electric vehicle. At the same time, the confidence in EV investment has increased due to the raising of capital. Along with this, confidence in the company has also increased on investment-led growth.