Tata Group stocks on a roll, rally up to 20%; here’s why

Shares of Tata group companies were on a roll on Wednesday with Tata Motors, Tata Motors DVR (Differential Voting Rights), Tata Power, Tata Chemicals and Tata Investment Corporation rallying between 10 per cent and 20 per cent on the BSE on back of heavy volumes, after Tata Motors said it will raise Rs 7,500 crore ($1 billion) for its passenger electric vehicle business from TPG Rise Climate at a valuation of up to $9.1 billion.

Tata Motors (TML) and TPG Rise Climate have entered into a binding agreement whereby TPG Rise Climate along with its co-investor ADQ, shall invest in a subsidiary of Tata Motors that will be newly incorporated, Tata Motors said in a statement.