Tata Group mulls IPO of luxury unit Jaguar Land Rover

Photo: JLR website

Tata Group is considering an initial public offering of Jaguar Land Rover, the luxury-car maker the Indian conglomerate bought in 2008 for $2.4 billion, people with knowledge of the matter said.

Senior Tata Group officials have held preliminary internal discussions over the past few months about the potential listing of Jaguar Land Rover on an international stock exchange, according to the people, who asked not to be identified because the information is private. The conglomerate is weighing London and New York as possible listing venues for Jaguar Land Rover, which is a unit of Tata Motors Ltd., one of the people said.

A spokesman for Tata Group, which has 29 listed companies, said “there are no plans to list JLR.” A representative for Tata Motors said “there is no truth in the information,” without elaborating.

Tata Motors’ U.S.-traded shares rose as much as 1.9 percent to $35.55 in New York. The company’s Mumbai-listed shares have fallen 4.2 percent this year, giving the company a market value of 1.45 trillion rupees ($22.5 billion).

Revenue Boost

The Indian company has turned around Jaguar Land Rover since buying the business from Ford Motor Co., helping boost revenue more than sevenfold between 2008 and 2015. Deliberations are at an early stage, and Tata Group hasn’t made a final decision to pursue an IPO of the business, according to the people. Details such as timing and the potential fundraising size haven’t been set, the people said.

Selling stock would help Jaguar Land Rover fund the development of new models and investments in connected-car technologies and autonomous driving systems. A listing of the business could become one of the first major tasks for Tata Group’s new chairman,  Natarajan Chandrasekaran, who took over leadership of the conglomerate in February.

Any listing of Jaguar Land Rover would follow sports-car brand Ferrari NV, whose shares have more than doubled in New York trading over the past year. Aston Martin, the British manufacturer of James Bond’s favorite vehicles, is considering a London IPO as early as next year, people familiar with the matter said last month.

Jaguar Land Rover will invest 4 billion pounds ($5.1 billion) in the financial year through March 2018, including spending on a new factory in Slovakia, Tata Motors Chief Financial Officer C. Ramakrishnan said last month. Tata Motors had 785.8 billion rupees of gross debt at the end of March, according to an investor presentation posted on its website.

Siddharth Philip also contributed to this story.

Also Read: India: Tata Motors forms JV with Jayem Automotives for performance vehicles

Jaguar Land Rover buys stake in car technology firm CloudCar

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
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