Tata Motors seeks to raise $1 billion for new EV biz, values it at $7 billion

Tata Motors Ltd, India’s largest vehicle maker, is in talks with bulge bracket buyout funds to raise as much as $1 billion for its new electric vehicles (EV) division, valuing the business at nearly $7 billion, two people directly aware of the discussions said.

Tata Motors, which got shareholders’ approval to separate its passenger vehicle business in March, is in the process of transferring the EV portfolio into a step-down arm in which the proposed investment will be raised.

“The talks are at an early stage, and several global PE firms, including Blackstone Group, TPG Capital and KKR & Co., have been approached,” one of the two people said seeking anonymity.