TVS Motor Company jumped 9.32% to Rs 778.55 after the media reported that the company is in talks to raise funds for its electric vehicle (EV) subsidiary.
The media reported that TVS Motor is in talks with a clutch 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 $3.5-4 billion. TVS is seeking to raise the funds from pure financial investors and has no plans to onboard strategic investors, reports suggested.On 21 October 2021, the board of TVS Motor approved the incorporation of a wholly owned subsidiary to undertake its electric mobility business.
In a recent earnings call, KN Radhakrishnan, director and chief executive officer, said: "We are investing more than Rs 1,000 crore to create a (EV) portfolio. This will be in addition to the iQube. Very shortly we will see new EV products coming in. This subsidiary will give us the flexibility and freedom to scale up the business. We will look at global markets - developed and developing - under this strategy."
TVS iQube electric scooter is the brand's first model in their EV portfolio.
TVS Motor Company, part of the TVS Group, is a two and three-wheeler manufacturer. The company's consolidated net profit jumped 29.2% to Rs 234.37 crore on a 23.4% surge in net sales to Rs 6,483.42 crore in Q2 FY22 over Q2 FY21.
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