Tata’s Electric Vehicle Unit, TPEML, Plans $1-2 Billion IPO in FY25-26 to Capitalize on India’s Growing EV Market

Tata Passenger Electric Mobility Limited (TPEML), the subsidiary of Tata Motors behind popular electric models like Nexon EV and Tiago EV, is gearing up for a potential initial public offering (IPO) in the next 12-18 months, aiming to raise $1-2 billion. This move reflects Tata Group’s strategic focus on capitalizing on the flourishing electric vehicle (EV) sector in India, according to a report by The Hindu BusinessLine.

According to a banker familiar with the matter, the listing of TPEML is aimed at allowing the Tata Group to monetize its investments in the electric vehicle business rather than solely raising funds from the market.

While a precise timeline for the IPO is yet to be finalized, the group is reportedly considering the fiscal year 2025 or 2026 as a potential window, contingent on favorable market conditions for electric vehicles and positive overall stock market sentiment. Tata Motors has already committed $1 billion to TPEML through internal resources, and this commitment is progressing as planned.

The announcement follows TPEML’s successful securing of $1 billion in funding from TPG in January 2023, as part of its ambitious $2 billion investment plan for the EV segment by 2026, according to various media reports. While the IPO could enhance its fundraising capabilities, insiders suggest that the primary motivation stems from Tata Group’s broader strategy to unlock value from its investments in the electric vehicle sector.