TPEML IPO: Tata Group To List $1-2 Billion Electric Vehicles Business In 12-18 Months – News18

The Tata Group is eyeing to listing its electrical car (EV) unit Tata Passenger Electric Mobility Ltd (TPEM) because it goals to monetise its investments within the EV enterprise, reported BusinessLine.

Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors and the mind behind in style fashions like Nexon EV and Tiago EV, is revving up for a possible preliminary public providing (IPO) within the subsequent 12-18 months.

This public debut, aiming to lift $1-2 billion, signifies the Tata Group’s strategic push in the direction of monetising its investments within the quick-rising EV house.

Tata Motors is the market chief within the electrical automobile market with greater than 80 per cent market share.

While the IPO could assist the EV maker in its fundraising plans, its itemizing has extra to do with the Tata group’s general technique on funding monetisation, the report stated, 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 advised BusinessLine.

TPEM closed $1 billion spherical of funding from US non-public fairness main TPG in January 2023. The fundraise was a part of the corporate’s plans to infuse $2 billion by 2026.

According to stories, TPEM’s valuations are pegged at $9.5–10 billion.

Tata Motors, by way of TPEML, has offered over 53,000 electrical vehicles to date in FY24 and expects to promote about 100,000 EVs in FY25, as per stories.

In January, Tata Motors’ EV gross sales grew by 69 per cent yr-on-yr to six,979 models (together with exports).

Tata Motors, which started EV-solely dealerships in September, plans to have 10 electrical vehicles in its portfolio over the following three to 4 years.

Tata Motors just lately was the newest after MG Comet to slash costs of its two in style EV models-Nexon and Tiago-by as much as Rs 1.2 lakh.