Another Tata Group IPO Soon! Its Electric Vehicle Arm To Launch $2 Billion IPO In 2025

With five big Tata Group IPOs already in line for 2024 and 2025, another one has now been added to the list for investors. Tata group is eyeing a $2 billion IPO of its electric vehicle arm by next year.

Tata Group To Launch $2 billion IPO Of Its EV Arm In 2025

tata ev ipo/tata motors

In an effort to profit from its investments in the electric vehicle (EV) industry, the Tata Group is considering listing of Tata Passenger Electric Mobility Ltd (TPEM), the company that manufactures EVs.

The Tata group intends to list the EV unit for $1¨C2 billion in the next 12¨C18 months, or by FY25 at the latest, through IPO, "if business climate for EVs remains robust and the overall market sentiments is positive", as per The HinduBusinessLine report.

Popular EV Cars Manufactured By Tata Group's IPO-Bound EV Arm

tata motors/et

The biggest producer of electric vehicles (EVs) in India, TPEM is a division of the massive passenger car company Tata Motors. It is the creator of the popular EV models Tiago.ev and Nexon.ev. Reports state that TPEM is valued between $9.5 and $10 billion.

With a market share of more than 80%, Tata Motors leads the electric vehicle industry. According to the report, which cited sources, the Tata group's overall strategy for investment monetisation is more important than the EV maker's need for funding, even though the IPO may aid it in that regard.

¡°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 said. In January 2023, TPEM closed a $1 billion funding round led by US private equity firm TPG. A portion of the company's plans to inject $2 billion by 2026 included the fundraise.

According to reports, Tata Motors, through TPEML, has sold more than 53,000 electric vehicles in FY24 and anticipates selling roughly 100,000 EVs in FY25.

Sales of electric vehicles (EVs) at Tata Motors increased to 6,979 units in January, up 69% year over year (including exports). Tata Motors intends to offer ten electric vehicles in its lineup over the next three to four years after opening EV-only dealerships in September.

Also Read: Ratan Tata To Sell All Of His Shares In IPO Bound FirstCry In 2024

5 Other Tata Group IPOs Already In The Pipeline

tata ipo/shutterstock

After the IPO of Tata technologies in November 2023, the Tata group is already planning to launch five more IPOs soon.

1.Tata Autocomp Systems

2.Tata Play

3.Bigbasket

4.Tata Sons

5.Tata Advanced Systems

Click here to know more about these IPOs.

Also Read: Meet Thomas Mathew, The Man Writing Ratan Tata's Biography Book

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