Tata Motors has received its second and final investment of Rs 3,750 crore from private equity fund TPG Rise Climate TopGun Pte.

TPG has subscribed for mandatory convertible preferred shares in its subsidiary Tata Passenger Electric Mobility (TPEML), the automaker said. Tata Motors has over 85% market share in India’s passenger electric vehicle market.

Tata Motors added: “With the subscription of the second tranche of investor securities by TPG, the entire investment of Rs 7,500 crore to be invested by TPG under the agreement has been received by the subsidiary.”

Tata Motors received the first tranche of Rs 3,750 crore from TPG in March 2022. Tata Motors announced in 2021 that TPG and its co-investor ADQ would invest Rs 7,500 crore in a mandatory convertible vehicle to secure its 11% to 15% stake in its new electric car company.

The deal, signed in October 2021, makes TPEML India’s most valuable electric vehicle company, with a valuation of $9.1 billion. The company currently has three products, Nexon, Tiago and Tigor, but will gradually add at least six more over the next 2-3 years.

In May 2022, TPEML and Ford India signed a memorandum of understanding with Gujarat to acquire the latter’s plants. It completed the acquisition in January, giving the group an installed capacity of 3 lakh units per year, which can be expanded to more than 4 lakh units.