According to an ET report, India’s third largest two-wheeler maker is in talks with a clutch of global private equity investors to raise $300-500 million (Rs 2,220-3,700 crore) for its electric vehicle subsidiary.
The company may value its electric vehicle (EV) subsidiary at $3.5-4 billion, ET reported, quoting three people aware of the matter. TVS is seeking to raise the funds from pure financial investors with no plans to onboard strategic investors.
Following the development, shares of TVS Motors jumped more than 11 per cent to Rs 793.45, before paring some gains to trade at Rs 778.05 at 10.20 am. The scrip settled at Rs 712.20 on Monday.
BSE barometer and benchmark Sensex was trading at 60,454.92, 90.69 points or 0.15 per cent lower, at the time of writing this report.
In the second half of October, TVS had carved out a subsidiary for electric vehicles, reasoning that it will give it “scale and flexibility” to expand the EV business.
Shares of TVS Motor Company have rallied as much as 61 per cent in the year 2021 thus far. The scrip has surged about 40 per cent in the last one month.
Another homegrown automaker, Tata Motors, had raised $1 billion from TPG Capital in October at a valuation of $9.1 billion for its EV business.
