The shares of the Largest Automobile Manufacturer gained around 3% to ₹ 948.50 per share on Friday after the company plans spin-off and listing of its battery business to expand its presence in the country’s renewable energy and electric vehicle (EV) sectors.
At 1:45 p.m., On Friday Tata Motors Ltd shares were trading at ₹941.70 per share, up 2.16% from the previous close on the National Stock Exchange. The company has a market capitalization of ₹3,44,073 crores.
Tata group is planning to consider spinning off its battery business to expand its presence in the country’s renewable energy and electric vehicle (EV) sectors through its group subsidiary Agratas Energy Storage Solutions Pvt. This move could enable Agratas to raise funds and potentially go public. Bloomberg News reported.
As per the report, Tata is in the initial stages of talks to establish Agratas Energy Storage Solutions as an autonomous entity. The primary clientele for Agratas’s batteries includes Tata Motors and its subsidiary, Jaguar Land Rover Automotive.
Agratas specialises in the design and production of batteries for the automotive and energy sectors, with manufacturing facilities in India and the UK.Agratas could be valued at between $5 billion and $10 billion if it hits the stock market, depending on factors such as growth and market sentiments.
Tata Group’s strategic restructuring of Agratas could also support Tata Motors’ expansion into electric vehicles, This move aligns with Tata Motors’ objective of establishing an independent supply chain for electric vehicles and capturing a larger market share. Tata Motors recently regained its position as India’s most valuable carmaker, propelled by its strong presence in sports utility vehicles and electric vehicles (EVs).
The company’s shares have delivered a return of 52% in six months and 113% in a year.
The company’s revenue climbed by 25% year on year, rising from ₹88,489 crores in Q3FY23 to Rs 1,10,577 crores in Q3FY24. During the same period, net profit increased by 135% from ₹3,043 crores to a profit of ₹7,145 crores.
Written by Omkar Chitnis
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