BENGALURU – Tata Motors has begun talks with sovereign wealth funds and personal fairness buyers to lift as much as $1 billion through a stake sale in its electric-vehicle enterprise,The Financial Instances reported, citing sources.

The corporate, which owns Jaguar Land Rover, plans to promote a big minority stake, the newspaper report added, eyeing a valuation of about $10.5 billion.

The funds and buyers embody the UAE-based Abu Dhabi Funding Authority (ADIA) and Mubadala Funding Firm, the Saudi Arabia-headquartered Public Funding Fund, Singapore’s Temasek Holdings, and KKR and Common Atlantic.

Tata and among the corporations didn’t instantly reply to Reuters’ request for remark.

KKR declined to remark whereas Temasek stated it doesn’t touch upon “market hypothesis and rumors.”

Tata plans to make use of the majority of the proceeds to retire part of its excellent debt and infuse a small portion as major fairness within the EV enterprise, the report stated.

Earlier this week, Uber stated it plans to introduce 25,000 EVs over three years in India and can purchase autos from Tata, India’s largest EV maker.

Tata has outlined plans to broaden its EV portfolio with new fashions and better value factors.

India’s automotive market is tiny in comparison with its inhabitants, with EVs making up simply 1 p.c of whole automotive gross sales of about 3 million a 12 months. The Indian authorities needs to develop this to 30 p.c by 2030.

In 2021, Tata Motors raised $1 billion from TPG and Abu Dhabi state holding firm ADQ for its EV unit at a $9 billion valuation, pledging to speculate greater than $2 billion in its EV enterprise over 5 years.