Icon times
Tata Motors Stock News | Yadnya Investment Academy

Tata Motors Stock News | Yadnya Investment Academy

Published on 25 June 2021

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:

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 is in the need of some strategic investors to fund the separate segment of Passenger Vehicles.

How the hiving off will get the shape?

  • The company announced that it will welcome private equity investors as well as strategic partners which have done 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 to 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.
  • Comparing with Maruti, the company has a market share of around 50% in Indian markets with a valuation of Rs. 2.2 Lakh Crores.
  • Tata Motors also has a good amount of loan 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. It can remain dominant in the EV segment.

 

Conclusion:

The company has appointed JP Morgan and Morgan Stanley as the investment bankers for the hiving-off. 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.

 

Attachments
File Name
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs 7499/Year.

LATEST UPDATE

premium Premium
free Free
Read More

REPORTS


Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
16:10
Chat with InvestYadnya