Mumbai: Tata Motors Ltd, India’s top vehicle maker, is in talks with private equity funds to sell up to 25% each in six unlisted units, the Economic Times said on Friday, citing bankers close to the development.
The move is part of its plan to raise Rs30 billion from sales of stakes in subsidiaries, the newspaper said.
These include Tata Daewoo Commercial Vehicle Co, HV Transmissions, Tata Motors Finance, Tata Technologies and Telco Construction Equipment, it said.
“The company will bring down (stakes) by 20-25% in each of them,” it cited one banker as saying.
It would conclude the stake sales by June 2009, it cited another banker as saying.
A spokesman for Tata Motors declined comment on the report, saying: “We have already announced our intention to review our current investment portfolio and pursue a programme of monetising certain investments over the coming quarters.”
Tata Motors, which earlier this year acquired Jaguar and Land Rover for $2.3 billion, has said it was looking to sell stakes in some units to help fund the deal. It did not name the units, set a timeline or say how much money it was looking to raise.
Analysts have said these units could include HV Axles, HV Transmissions and TAL Manufacturing Solutions, as well as its stake in Tata Steel Ltd.
Tata Motors in July said it had sold 24% in an auto components unit to a group firm and booked a profit Rs1.1 billion. On Thursday, it sold 1.3% in Tata Steel for Rs4.86 billion, Bombay Stock Exchange data showed.
Tata Motors’ Rs41.5 billion rights issue is scheduled to open on Monday.