There is news in the market related to the Passenger Vehicle Segment of Tata Motors. What is this update on the PV business segment, know more about this in the article.
Introduction: Tata Motors Ltd Chart, Tata Motors Company Analysis, Tata Motors Company Profile & Tata Motors Company Fundamental Analysis
The company has announced in March 2021 that it will hive off the Passenger Vehicle segment from Tata Motors. It can be listed as a separate entity or a subsidiary unit under the umbrella of Tata Motors. The company needs some strategic investors to fund the separate segment of Passenger Vehicles.
How will the hiving off get the shape?
The company announced that it would welcome private equity investors and strategic partners that have made progress in Electric Vehicle Segment.
The Passenger Vehicle Segment, which looks after the development, manufacturing, distribution, and sale of Cars, SUVs, and Vans, can be hived off into a separate entity that will allow the company to sell some of its stakes the strategic investor/partner.
The valuation of the Passenger Vehicle Segment during March 2021 stands at Rs. 9,417 Crores with a market share of around 10% in Indian markets.
Compared with Maruti, the company has around 50% in Indian markets with a valuation of Rs. 2.2 Lakh Crores.
Tata Motors also has a good amount of loans in the Passenger Vehicle Segment, which the company wants to lead off with equity infusion.
Tata Motors wants to be net debt-free by the next 3 years.
The company has taken an Early-Mover advantage with a 65% share in the total EV sales of last year. As a result, it can remain dominant in the EV segment.
Conclusion: Tata Motors Share Analysis, Tata Motors Stock Analysis & Tata Motors Company Share Price
The company has appointed JP Morgan and Morgan Stanley as the investment bankers for the hiving-off. As a result, the company can soon announce the separation of the Passenger Vehicle segment. Tata Motors is planning to complete this hive-off process by the end of Q2FY22.
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