Tata Motors shares were on the up on Thursday after a report stated that the company is looking to raise $1 billion (₹8,277.8 crore) to strengthen its electric vehicle business in the country.

What Happened? An Economic Times report on Thursday revealed that Tata Motors is reportedly in talks with sovereign wealth funds and private equity investors to raise funds for its EV division via a stake sale.

Tata Motors is said to have approached the likes of the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company and Saudi Arabia's Public Investment Fund (PIF) for the sale of a significant minority stake at a valuation of roughly $10.5 billion (₹86,903.5 crore).

Singapore's Temasek Holdings and private equity investors such as KKR and General Atlantic are also some of the suitors that have caught Tata Motors’ attention.

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Tata Motors plans to raise up to $1 billion (₹8,277.8 crore) through the equity sale and will channel a bulk of the proceeds to retire a part of its outstanding debt while injecting the rest into the EV business as primary equity.

The development arrives days after the automobile giant signed a memorandum of understanding (MoU) with Uber, to provide 25,000 XPRES–T EVs to the ride-sharing giant's premium category service.

The automobile giant said that it will help Uber in electrifying its services across Delhi NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, and Ahmedabad, with deliveries to fleet partners beginning this month.

Price Action: Tata Motors Ltd. shares were up 1.14% at ₹434.40 on Thursday afternoon.