According to Bloomberg, there are people familiar with the matter,India’s Tata GroupIs considering a spin-off of its battery business, Agrat as Energy Storage Solutions Pv., To expand in renewable energy sources and electric vehicles in India.According to its website, Agrat designs and produces batteries for the automotive and energy industries, with factories in India and the UK, while Tata Motor and its subsidiary Jag Land Rovers are major customers of Agrat.
The people said Tata was in preliminary discussions to separate Agrat as a separate unit. Such a move could enable the battery business to raise funds and list at a later date on the Bombay Stock Exchange, and Agratas could be valued at between $5 billion and $10 billion, according to people familiar with the matter. It should be noted that the market cap depends on the growth rate of Agrat and the situation of the market.A Tata representative declined to comment on the report. In January, Facebook reported that Agatas was in talks with a number of banks in the hope of getting a deal.Green loansRaise up to $500 million to help it expand its factory footprint.Since some existing investors may wish to exit, one of the people said,Tata MotorsPlans are also being considered to spin off the electric vehicle business, which could be listed as a separate company at a later stage. However, these people also made clear that these plans are in the early stages of consideration, and Tata may decide not to split the business.Thanks to its strong position in the Indian SUV and electric car markets, Tata Motors regained its position as India’s most valuable carmaker last month. In addition, the company’s most recent quarterly earnings beat expectations, while subsidiary Jaguar Land Rover also delivered its highest profit performance in seven years. Shares in Tata Motors rose 1.67 percent to 938.4 rupees on Feb. 16, valuing the company at about 3.44 trillion rupees.
Post time: Feb-19-2024