Tata Group Mulls $1-2 bn EV Arm IPO in 2024-25
The Tata Group is considering an initial public offering valued at $1-2 billion for its electric vehicle manufacturing unit Tata Passenger Electric Mobility Limited (TPEM) over the next 12-18 months, according to a BusinessLine report.
The proposed listing is aimed more at allowing the Tata Group to monetize its sizeable investments in the EV space rather than just raising capital, highlighting underlying strategic motivations.
TPEM Leads India’s EV Market
Wholly owned by auto major Tata Motors, TPEM has emerged as India’s largest electric car producer on the back of popular models like the Nexon EV and Tiago EV. It commands an over 80% share currently in the rapidly growing market.
TPEM is targeting sales of one lakh EVs in 2024-25, underscoring prime prospects and positive sentiment that forms the backdrop for its IPO timeline considerations by the Tata brass.
Earlier Fundraise, Valuation Estimates
The subsidiary had raised $1 billion from private equity investor TPG in January 2023 as part of a larger $2 billion fund infusion roadmap. TPEM already boasts estimated valuations of $9.5-10 billion – among the highest for domestic auto firms.
An IPO at the indicated size would further accelerate the EV maker’s growth plans spanning capacity, product portfolio and distribution expansion over the next few years across segments.
