The Tata Group may be considering listing its luxury carmaker Jaguar Land Rover through an IPO, Bloomberg reported late last night citing unidentified sources, even as the group denied the report. Shares of Tata Motors Ltd, the Indian automobile major and the parent of Jaguar Land Rover, rose 2.5% to Rs 463.5 on BSE. Meanwhile, the benchmark BSE Sensex was up 0.1% at 31,348.2 points.
Bloomberg reported that senior group executives have held preliminary internal discussions over listing of the British luxury automobile company Jaguar Land Rover over an international stock exchange, which may potentially include New York Stock Exchange or London Stock Exchange. Tata Motors had bought an ailing Jaguar Land Rover in a surprise move in 2008 for $2.4 billion from Ford Motor Co.
However, the Tata Group has denied the report. “There are no plans to list Jaguar Land Rover,” the Bloomberg report itself and another Reuters report said quoting a Tata Group spokesperson without naming. “There is no truth in those rumours,” Reuters report added citing the Tata spokesperson.
Albeit, the Bloomberg report went on to say that the talks to list Jaguar Land Rover are at an early stage and the group has not yet took a final decision on the unit’s IPO, adding that the potential size of the listing and fundraising has also not been finalised yet.
Tata Motors has raised Jaguar Land Rover’s earnings by seven times since taking it over, but of late, there have been concerns over its weak performance.