Tata Group plans spin-off and listing of its battery business
What's the story
Tata Group is considering the possibility of spinning off its battery business, Agratas Energy Storage Solutions Pvt., into a separate entity.
According to the Economic Times, the move could enable Agratas to raise funds and potentially go public.
Agratas designs and manufactures batteries for the automotive and energy sectors. It operates factories in India and the UK.
Valuation
Possible valuation and expansion plans for Agratas
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 sentiment.
The company is currently in discussions with banks to secure a green loan of up to $500 million to expand its factories.
Tata Motors and its subsidiary, Jaguar Land Rover Automotive, are the primary customers of Agratas's batteries.
More IPOs?
Tata Motors is also exploring spin-off of its EV business
In addition to the potential spin-off of Agratas, Tata Motors is exploring similar plans for its electric vehicle (EV) division.
Some existing investors may be interested in exiting, which could lead to the EV business going public as a separate company at a later stage.
However, the plans are still in the early stages, and Tata may ultimately decide against proceeding with the spin-off.