According to persons familiar with the situation, Tata Group is thinking about spinning off its battery division as the Indian conglomerate continues to push into the nation’s renewable energy and electric vehicle markets.
The persons, who wished to remain anonymous due to the confidentiality of the situation, stated that Tata is currently in the early stages of talks about eventually separating apart Agratas Energy Storage Solutions Pvt as a separate entity. According to the people, a structure like this would enable the battery company to obtain capital and go public in Mumbai at a later date.
Depending on its growth and the state of the market, a listing might put Agratas’ value between $5 billion and $10 billion, they claimed. Tata’s spokesperson opted not to respond.
According to their website, Agratas has facilities in the UK and India where they design and manufacture batteries for the automotive and energy sectors.Its principal clients are Jaguar Land Rover Automotive Plc and Tata Motors Ltd.
According to a January Bloomberg News story, Agratas is in discussions with several banks to secure a green loan worth up to $500 million to support the development of its factories.
As some of the current investors may wish to quit, Tata Motors is reportedly looking into similar spinoff plans for its electric vehicle division. The people stated that Tata may decide not to move forward with the spinoffs and that these considerations are preliminary.
