Tata Motors’ subsidiary Tata Passenger Electric Mobility is preparing for a public listing in the coming 12-18 months, The Hindu BusinessLine reported.
The initial public offering (IPO) aims to garner $1-2 billion, underlying the Tata Group’s strategic thrust towards monetising investments in the burgeoning EV space, the newspaper reported.
“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,” said a banker aware of the matter, as quoted by The Hindu BusinessLine.
Whereas the IPO timeline is not sacrosanct, the company is supposedly looking at FY25 or FY26 as a potential window.
Tata Motors has already committed an investment of $1 billion in Tata Passenger Electric Mobility via internal resources, and this plan is moving ahead as per schedule.
The news comes on the heels of TPEML successfully securing $1 billion in funding from TPG in January 2023 as part of its ambitious $2 billion investment plan for the EV segment by 2026, as per various media reports.
Whereas the listing could give a fillip to its fundraising capabilities, persons in the know say that the primary driver lies in the Tata Group’s broader strategy of unlocking value from its EV investments.