Tata Motors is in talks with investors, including private equity funds, to raise capital for its electric vehicle business as the Tata Group company works to build a range of affordable electric cars.
In March this year, the company had received shareholders' approval for its plan to subsidiarise its passenger vehicles, including electric vehicles, business into a separate subsidiary through a scheme of arrangement.
While announcing the plan last year, Tata Motors had said it would seek a strategic partnership to help the unit secure its long-term viability.
"Discussions are open for a strategic partner or financial investors for the passenger vehicle business and the electric vehicle space is seen as a strong growth engine. Plans are open-ended currently in terms of likely partnerships," the Economic Times quoted a company source as saying.
Talks with investors are at an early stage and may not result in a deal, the publication said quoting company officials.
Tata Motors will need approval from the National Company Law Tribunal to subsidiarise its passenger vehicles business and is hoping to complete the process by September this year, it said.
The company's consolidated net loss widened to Rs 13,395 crore in financial year 2020-21 from Rs 11,975 crore in FY20.
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