Jaguar Land Rover Owner Scores $1B EV Deal Sending Shares Soaring

Tata Motors Ltd., the owner of Jaguar and Land Rover, saw its shares fly higher on Wednesday after investors learned that the company had penned a $1 billion EV deal.

The Indian owner of Jaguar Land Rover, surged 20% after the automaker agreed to sell as much as a 15% stake in its electric-vehicle business to a TPG fund and other investors. The unit is valued at a whopping $9.1 billion.

TPG Rise Climate will buy the stake for 75 billion rupees, or $993 million, according to what Tata Motors said in an exchange filing on Tuesday.

The company additionally plans to create a portfolio of 10 electric vehicles over the next five years.

On the news, Tata Motors jumped 19.5% as of 9:50 a.m. in Mumbai on Wednesday to their highest level in more than four years. The broader S&P BSE Sensex index was up 0.6%.

The Mumbai-based carmaker’s electric-vehicle unit will invest about $2 billion over five years, according to a statement from Tata Motors Chief Financial Officer P.B. Balaji.

Earlier this month Shailesh Chandra, president of Tata Motors’ passenger-vehicle unit said that Tata UniEVerse, a coalition of Tata Group companies committed to developing EV infrastructure and ecosystems, may also invest in a battery-manufacturing facility. It may look for partnerships to begin with.

Tata Motors shares have doubled this year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.