TVS Motor Company jumped 9.32% to Rs 778.55 after media reported the company was in talks to raise funds for its electric vehicle (EV) subsidiary.
Media reported that TVS Motor is in talks with a handful of global private equity investors to raise $ 300-500 million (Rs 2,220-3,700 crore) for its electric vehicle subsidiary at a valuation of 3 , 5 to 4 billion dollars. TVS seeks to raise funds from pure financial investors and has no intention of onboarding strategic investors, reports suggested.
On October 21, 2021, the board of directors of TVS Motor approved the formation of a wholly owned subsidiary to undertake its electric mobility activities.
In a recent earnings call, KN Radhakrishnan, Director and CEO, said: “We are investing over Rs 1,000 crore to create a portfolio (EV). This will add to the iQube . Very soon we will see a new EV products entering. This subsidiary will give us the flexibility and freedom to grow the business. We will be looking at global markets – developed and developing – as part of this strategy. ”
The TVS iQube electric scooter is the brand’s first model in its portfolio of electric vehicles.
TVS Motor Company, part of the TVS group, is a manufacturer of two and three wheels. The company’s consolidated net profit jumped 29.2% to Rs 234.37 crore on a 23.4% increase in net sales to Rs 6,483.42 crore in Q2 FY22 compared to Q2 FY21.
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