Bhopal: 17 March, 2023 (Purepolitics)
BENGALURU, India – According to The Economic Times, Tata Motors has begun talks with sovereign wealth funds and private equity investors to raise up to $1 billion through a stake sale in its electric-vehicle business.
According to the newspaper report, the company, which owns Jaguar Land Rover, plans on selling a significant minority stake for about $10.5 billion.
The funds and investors include the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company in the UAE, the Public Investment Fund in Saudi Arabia, Temasek Holdings in Singapore, and KKR and General Atlantic.
Tata and some of the other companies did not respond immediately to Reuters’ request for comment.
Temasek said it does not comment on “market rumors and speculation,” while KKR declined to comment.
According to the report, Tata intends to use the majority of the proceeds to retire some of its outstanding debt and infuse a small portion as primary equity in the EV business.
Earlier this week, Uber announced plans to introduce 25,000 electric vehicles in India over the next three years, with vehicles purchased from Tata, India’s largest EV manufacturer.|
Tata has stated that it intends to expand its electric vehicle portfolio with new models and higher price points.
India’s car market is tiny in comparison to its population, with EVs accounting for only 1% of total car sales of about 3 million per year. The Indian government hopes to increase this to 30% by 2030.
In 2021, Tata Motors raised $1 billion from TPG and Abu Dhabi state holding company ADQ for its EV unit at a $9 billion valuation, pledging to invest more than $2 billion in its EV business over five years.
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