The Tata Group is eyeing to list its electric vehicle (EV) unit Tata Passenger Electric Mobility Ltd (TPEM) as it aims to monetise its investments in the EV business, reported BusinessLine.
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors and the brain behind popular models like Nexon EV and Tiago EV, is revving up for a potential initial public offering (IPO) in the next 12-18 months.
This public debut, aiming to raise $1-2 billion, signifies the Tata Group’s strategic push towards monetising its investments in the fast-growing EV space.
Tata Motors is the market leader in the electric car market with more than 80 per cent market share.
While the IPO may help the EV maker in its fundraising plans, its listing has more to do with the Tata group’s overall strategy on investment monetisation, the report said, citing sources.
“Listing of TPEML is to ensure that the Tata Group is able to monetise its investments in the electric vehicles business rather than to garner funds from the market,” a banker told BusinessLine.
TPEM closed $1 billion round of funding from US private equity major TPG in January 2023. The fundraise was part of the company’s plans to infuse $2 billion by 2026.
According to reports, TPEM’s valuations are pegged at $9.5–10 billion.
Tata Motors, via TPEML, has sold over 53,000 electric cars so far in FY24 and expects to sell about 100,000 EVs in FY25, as per reports.
In January, Tata Motors’ EV sales grew by 69 per cent year-on-year to 6,979 units (including exports).
Tata Motors, which began EV-only dealerships in September, plans to have 10 electric cars in its portfolio over the next three to four years.
Tata Motors recently was the latest after MG Comet to slash prices of its two popular EV models-Nexon and Tiago-by up to Rs 1.2 lakh.
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