Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors known for its Nexon EV and Tiago EV models, is gearing up for an IPO in the 2025–2026 fiscal year. The IPO aims to raise between ₹8,000 crore and ₹16,000 crore, reflecting Tata Group’s focus on capitalising on India’s rapidly growing electric vehicle (EV) market. Tata Motors, which holds over 80% of India’s EV market share, plans to invest $2 billion by 2026 through TPEML, with plans to launch 10 new EV models and develop a battery electric vehicle (BEV) architecture.
In January 2023, TPEML secured a $1 billion investment from TPG Rise Climate, strengthening its financial foundation. The IPO is expected to unlock value for Tata Motors and monetise its EV investments. Details on IPO pricing, lot size, and dates are awaited, with the IPO expected to open by mid-2025. Investors are keenly watching developments in this promising opportunity.
Industry Outlook
- The Indian EV market is expected to grow from US$ 3.21 billion in 2022 to US$ 113.99 billion by 2029, with a 66.52% CAGR.
- India's EV battery market is projected to rise from US$ 16.77 billion in 2023 to US$ 27.70 billion by 2028, reflecting rapid adoption.
Tata Passenger Electric Mobility IPO Objectives
The objectives of the Tata Passenger Electric Mobility IPO are yet to be announced.
About Tata Passenger Electric Mobility Infocomm Limited
Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors Limited, is dedicated to advancing electric vehicle (EV) technology in India. Established in December 2021, TPEML focuses on developing and producing electric passenger vehicles, aiming to promote sustainable mobility solutions across the country.
In collaboration with TPG Rise Climate, TPEML plans to invest $2 billion by 2026. This investment is directed towards launching ten new electric vehicles, building a dedicated Battery Electric Vehicle (BEV) architecture, and supporting the local manufacture of key components. Additionally, the company is committed to developing advanced automotive and battery technologies and catalysing the creation of widespread charging infrastructure to facilitate rapid EV adoption in India.
TPEML has already made significant strides in the Indian EV market, commanding over 71% of the market share in the four-wheeler EV segment. With models like the Nexon.ev, Tigor.ev, and Tiago.ev, the company has sold over 100,000 EVs in nearly four years and is on track to achieve an annual volume of 100,000 units. The company anticipates that EV sales will account for 20% of Tata Motors' total passenger vehicle sales in the next three years and at least 50% by 2030.
In January 2023, TPEML acquired Ford India Private Limited's manufacturing plant in Sanand, Gujarat, to support its expansion plans. This acquisition has unlocked an additional state-of-the-art manufacturing capacity of 300,000 units per annum, scalable to 420,000 units per annum, enabling TPEML to meet the growing demand for electric vehicles in India.
Tata Passenger Electric Mobility Infocomm Limited Peer Details Comparison
- Mahindra Electric: Focused on premium electric SUVs, such as the BE 6e and XUV 9e, offering over 500 km range.
- Maruti Suzuki: Entering the EV space with plans for affordable and compact electric vehicles tailored to the Indian market.
- Hyundai Motors India: The company will expand its EV portfolio with the launch of its first India-made electric vehicle, which is expected early next year.
- MG Motor India: Offering innovative solutions like battery rental services and free charging options to attract cost-conscious buyers.
How To Check the Allotment Status of the Tata Passenger Electric Mobility IPO?
Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Apply for Tata Passenger Electric Mobility IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the Tata Passenger Electric Mobility IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of Tata Passenger Electric Mobility IPO
Registered office: Nanavati Mahalaya, Flr 3 & 4, Plot 18 Mudhana Shetty Marg, Nr BSE, Fort NA Mumbai City Maharashtra 400001
Financial Performance of Tata Passenger Electric Mobility Infocomm Limited (TPEML)
| Metric | FY2023 | FY2022 |
|---|---|---|
| Total Debt (x) | - | - |
| Gearing Ratio (x) | 0.5 | 0.4 |
| Surplus Liquidity (in ₹ crore) | 3,980.2 | - |
| Operating Income (in ₹ crore) | 42.0 | 8.6 |
| PAT (Profit After Tax) (in ₹ crore) | (253.6) | (64.6) |
| Total Outside Liabilities/TNW (x) | 0.6 | 0.4 |
| Interest Coverage (x) | (400.0) | (607.3) |
| Total Debt/OPBDIT (x) | (6.3) | (5.7) |
Know before investing
Strengths
10Backed by the Tata Group with a revenue of $165 billion (2024), ensuring robust financial and operational support.
Holds over 80% market share in the Indian EV market, making it a dominant player.
Offers a diverse range of EVs, including best-sellers like the Nexon EV and Tiago EV.
Operates more than 900 dealerships and service centres across India, ensuring accessibility and customer satisfaction.
Plans to achieve net-zero carbon emissions by 2040, investing ₹28,000 crore in EV development by 2025.
Benefits from India’s FAME II scheme, offering $1.43 billion in subsidies and a GST reduction from 12% to 5% on EVs.
Aims to penetrate international markets, targeting a 20% market share in Europe’s EV sector by 2025.
Significant investment in R&D (₹7,920 crore in FY22) supports innovation in battery technology and smart vehicle features.
The Indian EV market is witnessing a 200% year-on-year demand surge, aligned with global sustainability trends.
Collaborations with tech firms enhance AI capabilities, positioning TPEML to capitalise on the growing smart vehicle market, projected to reach $15 trillion by 2030.
Risks
10Heavy reliance on the Indian market (80% revenue) restricts global diversification and exposes the company to regional market risks.
Faces competition from established global players like Tesla and domestic companies like Mahindra Electric and Ather Energy.
The significant price gap between EVs (₹14.5 lakh) and traditional vehicles (₹8 lakh) may deter cost-sensitive Indian consumers.
Limited EV charging infrastructure in India (around 1,850 public charging stations) hampers widespread EV adoption.
Rapid advancements in battery and EV technology may render existing models outdated, requiring continuous innovation.
Fluctuations in prices of lithium, cobalt, and nickel increase production costs, impacting profit margins.
Stricter emissions norms and compliance requirements may raise operational costs and complicate market strategies.
Global chip shortages have delayed production, resulting in revenue losses and disrupted project timelines.
Perceived reliability issues with EVs compared to traditional vehicles deter potential buyers, affecting sales growth.
Dependence on imported components like batteries from China poses risks from geopolitical tensions and trade restrictions.
