- 01 Apr 2025
- ICICIdirect Research
TATA MOTORS HAS INFORMED EXCHANGED THAT IT HAS ENTERED INTO A SHARE PURCHASE AGREEMENT WITH TATA AUTOCOMP SYSTEMS LIMITED
TATAMOTORS - 644 Change: -21.35 (-3.21 %)News: In a Press release, Tata motors has informed exchanged that it has entered into a share purchase agreement with Tata Autocomp Systems Limited to sell its wholly owned subsidiary i.e. JLR’s 80% stake in Jaguar Land Rover Ventures for £77 million (~₹ 850 crores), with potential additional deferred consideration of £6.3 million (₹ 70 crore) based on performance metrics. The proceeds of the sale will be held by JLR.
View: Jaguar Land Rover Ventures Limited, along with its wholly owned subsidiary Artifex Interior Systems Limited, recorded £296 million (approximately ₹3,182 crore) in revenue. The net worth of these entities was reported at £14 million (around ₹150 crore) representing 0.16% of Tata Motors' consolidated net assets. Artifex Interior Systems (formerly known as IAC UK) is an independent automotive interior systems manufacturer, specialising in the design, development, manufacturing, and supply of innovative interior components for major global automotive manufacturers. The deal is executed at P/S of ~0.3x on TTM basis, which prima facie looks on the lower side, however given the size of deal is small, it will not have any material impact on the financials at Tata Motors.
Impact: Neutral