Two-wheeler major TVS Motor Company Ltd on Tuesday rejected a news report which said the company was in negotiations with investors for raising funds for its electric vehicle subsidiary (EV).
The stock exchanges had sought clarification from the company on a report published in Economic Times which said TVS Motor was in talks with global private equity investors to raise $300-$500 million for its EV subsidiary at a valuation of $3.5-4 billion.
"There is no such negotiation taking place," TVS Motor said in its reply to the stock exchanges.
The company said its board had on October 21 granted approval for incorporation of a wholly-owned subsidiary to undertake its electric mobility business. However, it has not yet incorporated the subsidiary.
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The report had said that the company is looking to raise funds from pure financial investors and does not plan to bring onboard strategic investors. Citing a source, it said the talks are in initial stages and may take 6-12 months to bring the investors onboard.
The company will use the funds to develop a product pipeline to cater to the global and local market, it said.
In its reply, TVS Motor said that all material information that has a bearing on the operation/ performance of the company has been disclosed as per the regulations of the Securities and Exchange Board of India (SEBI) and the trading movement in its shares is purely market driven.
Shares of TVS Motor were trading 3.11 per cent higher at Rs 734.35 on the BSE in the afternoon trade on Tuesday.
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