Indian conglomerate Tata Group is said to be considering an initial public offering (IPO) for its Jaguar Land Rover subsidiary, according to reports in India citing unnamed sources.
The UK luxury car maker was acquired by Tata Motors for US$2.4bn from Ford at the height of the global financial crisis in 2008 and has since enjoyed record volumes thanks mainly to buoyant demand in China and the US.
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JLR's global revenue has increased more than seven-fold since the acquisition. By contrast, the rest of Tata Motors has struggled to make a profit over the last few years due slow growth in its home market.
According to the reports, Tata officials have recently discussed listing the unit on an international stock exchange, with London and New York the most favoured.
A spokesman for Tata Group rejected outright these suggestions, however, saying "there are no plans to list JLR" and that there is "no truth" in these rumours.
A public listing would help JLR improve funding for investment at a time when technology demands in the automotive sector are rising rapidly with electric and hybrid power, autonomous driving and connectivity at the forefront of new product development across the industry.
Listing discussions are understood to be at an early stage, with no final decision imminent at present.
