TVS Motor spurts on buzz of fundraising plan for EV subsidiary


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.

Powered by Capital Market – Live News

(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear reader,

Business Standard has always strived to provide up-to-date information and commentary on developments that matter to you and have broader political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these difficult times resulting from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative views and cutting-edge commentary on relevant current issues.
However, we have a demand.

As we fight the economic impact of the pandemic, we need your support even more so that we can continue to provide you with more quality content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscriptions to our online content can only help us achieve the goals of providing you with even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital editor

Previous Deferred interest plans can benefit both the fund management industry and investors
Next Margaret helps hospital charity launch fundraising t-shirt, one year after receiving world's first Covid vaccine