Mumbai: Tata Motors shares gained over 20 per cent after the company announced a Rs 7,500-crore investment in a newly formed passenger electric vehicle business subsidiary by US-based private equity firm TPG and Abu Dhabi's sovereign wealth fund ADQ.
Tata Motors shares touched a high of Rs 519.45 on the BSE and finally closed at Rs 506.75, up 20.43 per cent with brokerages expecting more upside in the next few quarters.
Tata Motors plans to invest $2 billion in the division and release 10 EV models over the next five years, reports said. Other group stocks like Tata Power and Tata Chemical rallied up to 15 per cent as they would partner with Tata Motors in setting up the infrastructure like charging stations and production of lithium-ion batteries for soon to be incorporated electric vehicle division.
Tata Investment Corporation also gained 14 per cent. Buying was seen all Tata firms post-Air India buyout announcement.