Last up to date: February 26, 2024, 14:01 IST
Tata Group to record $1-2 billion electrical automobile enterprise in 12-18 months
Tata Motors is the chief within the electrical automotive market with greater than 80 % market share.
Tata Group is eyeing to record its electrical automobile (EV) unit Tata Passenger Electric Mobility Ltd (TPEM) because it goals to monetize its investments within the EV enterprise, reviews BusinessLine.
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors and the brains behind in style fashions like Nexon EV and Tiago EV, is getting ready for a attainable preliminary public providing (IPO) within the subsequent 12-18 months.
This public debut, which goals to boost $1-2 billion, displays Tata Group’s strategic effort in direction of monetizing its investments within the fast-growing EV sector.
Tata Motors is the chief within the electrical automotive market with greater than 80 % market share.
The report, citing sources, mentioned the IPO might assist the EV maker in its fund-raising plans, however its itemizing is linked to Tata Group’s total technique on funding monetization.
“The itemizing of TPEML is to make sure that the Tata group is ready to monetize its investments within the electrical autos enterprise quite than elevating funds from the market,” a banker informed BusinessLine.
TPEM closed a $1 billion funding spherical from US personal fairness main TPG in January 2023. The fundraise was a part of the corporate’s plan to take a position $2 billion by 2026.
According to the report, the valuation of TPEM is estimated at $9.5-10 billion.
According to the report, Tata Motors by TPEML has bought over 53,000 electrical vehicles up to now in FY2024 and is anticipated to promote round 100,000 EVs in FY2025.
In January, Tata Motors’ EV gross sales grew 69 per cent year-on-year to six,979 models (together with exports).
Tata Motors, which launched its solely EV dealership in September, plans to have 10 electrical vehicles in its portfolio over the subsequent three to 4 years.
After MG Comet, Tata Motors has lately lowered the costs of its two in style EV fashions – Nexon and Tiago by as much as Rs 1.2 lakh.
