Indian legacy automaker Tata Motors aims to list its electric vehicle business, Tata Passenger Electric Mobility Limited (TPEML), in the stock market in the next 12 to 18 months, The Hindu Business Line reports, citing multiple sources aware of the matter.
TPEML to file for $1-2B IPO
TPEML is reportedly eyeing an initial public offering (IPO), seeking to raise $1-2 billion to monetize its electric vehicle-related investments.
In hindsight, the Tata Motors subsidiary successfully secured a $1 billion funding round from US-based private equity major TPG’s investment in January last year.
This major fundraising is crucial for the automaker’s strategy to raise $2 billion by 2026.
“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.”
Unnamed banker
Timeline
The report source noted that Tata Group has yet to determine the exact date for the planned public debut of its electric vehicle business.
The company apparently expects the public listing to occur in the following 12 to 18 months (in FY25 or, at the latest, by FY26), assuming that the electric vehicle business situation remains strong in India.
As of today, the Indian automotive group pledged to allocate $1 billion in TPEML via internal accruals. According to the sources, TPEML is “well on track” with this plan.
However, Tata Motors has yet to confirm the report.
About TPEML
Tata Motors founded Tata Passenger Electric Mobility Limited (TPEML) in 2021, advancing as one of the latest additions to the Tata Group.
However, it is the first business to secure significant backing from private equity investments.
In FY 2024, TPEML sold more than 53,000 EVs. It accounted for 73% of India’s electric vehicle industry, advancing as the top electric automaker in the country.
Previous reports suggest that TPEML’s valuations amount to $9.5–10 billion, accounting for 12% of Tata Motors’ passenger vehicles lineup. Therefore, it would be unsurprising if the EV business unit surpasses the automaker’s diesel vehicles unit.
