Indian automaker Tata Motors is facing challenges with the performance and profitability of its subsidiary, Jaguar Land Rover (JLR). Tata Motors' consolidated revenue in FY24 increased by 27% to INR 438,000 crore (USD 52.5 billion) [1c3279a8]. However, JLR's profitability in FY25 is expected to be flat, and reported free cash flows may drop substantially. Despite these challenges, JLR is planning to launch all-electric versions of its popular models, the Range Rover and Defender [1c3279a8].
In contrast to the challenges faced by JLR, Tata Motors is planning to list its electric vehicles (EV) business, Tata Passenger Electric Mobility Limited (TPEML), in an initial public offering (IPO) within the next 12-18 months. The IPO is part of the Tata Group's investment monetization plan and is expected to raise $1-2 billion. TPEML currently holds a 73% market share in the EV space and has sold over 53,000 electric cars in FY24. The company is valued at $9.5-10 billion and has received a commitment of $1 billion in investment from the Tata Group. The IPO is scheduled to take place in FY25 or latest by FY26 [3fa06efc] [1c3279a8].
These developments highlight the contrasting situations within Tata Motors. While JLR is facing challenges, Tata Motors is actively expanding its presence in the electric vehicle market. The IPO of TPEML will provide Tata Motors with additional funding to support the development and production of electric vehicles, contributing to the overall growth of the EV market in India. It also reflects the growing interest in electric vehicles in the country and the increasing focus on investment monetization strategies among Indian companies [3fa06efc] [1c3279a8].
In other news, Hyundai Motor's Indian business has submitted draft papers for an IPO aiming to raise between $2.5 billion and $3 billion. If successful, this IPO will surpass the current record held by Life Insurance Corporation (LIC) of India, which raised around $2.45 billion. India's top five largest IPOs include LIC, PayTm (One 97 Communications), Coal India, General Insurance Corporation of India, and SBI Cards and Payment Services. The IPO by Hyundai Motor India aims to enhance its brand image and provide liquidity in the country [85b8db83].