Tata Passenger Electric Mobility Limited (TPEML) Plans $1-2 Billion IPO in Fiscal Years 2025-2026

Tata Passenger Electric Mobility Limited (TPEML), a Tata Motors subsidiary known for models like Nexon EV and Tiago EV, is preparing for an IPO in the next 12-18 months, aiming to raise $1-2 billion. This move highlights Tata Group’s strategic effort to capitalize on its investments in India’s thriving EV sector, as per The Hindu BusinessLine report.

According to a banker familiar with the situation, as cited by The Hindu BusinessLine, the listing of TPEML aims to allow the Tata Group to profit from its investments in the electric vehicle sector rather than to raise funds from the market.

Although a specific IPO timeline hasn’t been confirmed, reports suggest Tata Group is considering fiscal years 2025 or 2026, depending on favorable market conditions for EVs and overall stock market sentiment. Tata Motors has pledged $1 billion from internal resources for TPEML, and the plan is on track.

The announcement follows TPEML’s achievement of securing $1 billion from TPG in January 2023 for its $2 billion EV investment plan by 2026, according to multiple media outlets. Although the IPO may enhance fundraising, insiders indicate that the Tata Group’s main goal is to extract value from its EV investments.

TPG Rise Climate has invested in Tata Passenger Electric Mobility, Tata Group’s newest company, which plans to invest $2 billion by 2026 to introduce 10 new electric vehicles and develop a dedicated BEV architecture.

With a robust lineup of “New Forever” products and substantial investments in EVs, the EV business has achieved remarkable growth in recent years and aims to sustain this momentum.

Capturing over 70% of the market share, Tata’s EV division targets sales of 70,000–80,000 electric vehicles this fiscal year and aims to reach 100,000 units by FY25.

If all goes according to plan, investors won’t have to wait long for another Tata Group company. Tata Technologies, which raised approximately $365 million through an IPO late last year, marks the group’s return to IPOs after a 20-year hiatus since TCS was listed in 2004.

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