Tata Motors has announced that it has incorporated a wholly-owned subsidiary, Tata Passenger Electric Mobility Ltd. (TPEML), which will manufacture electric motor vehicles.
The Ministry of Corporate Affairs issued the Certificate of Incorporation for the same on December 21, 2021, the auto major said in a regulatory filing on Wednesday.
The subsidiary has been incorporated "to manufacture, design, develop all kinds of services related to electric vehicles/electric mobility, hybrid electric vehicles of all kinds and all descriptions for carrying passengers or other personnel…"
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Tata Motors, which will be the promoter of TPEML, would hold 100 per cent share capital in the new electrical vehicle (EV) unit. The new subsidiary has been incorporated with the initial capital of Rs 700 crore, Tata Motors added in the exchange filing.
"TPEML has been incorporated with authorised capital of 70,00,00,000 equity shares of Rs 10/- each aggregating to Rs 700,00,00,000/-. The entire paid-up share capital will be held by TML," Tata Motors added.
The company had in October this year announced its plans to infuse over $2 billion in its EV business over the next five years after the Indian automaker made the announcement that it had raised funds from private equity firm TPG.
TPG's Rise Climate Fund and Abu Dhabi state holding company ADQ had agreed to pump in around $1 billion to expand the company's EV business for which it would create a separate unit, according to the automaker.
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