JSW, SAIC plan to take MG Motor public in 3 years

JSW and SAIC eye public listing of MG Motors in three Years

JSW MG Motor India, the joint venture (JV) between India's JSW Group and Shanghai-based SAIC Motor, plans a public listing in three years, sources aware of the discussions between the two groups have told Moneycontrol.

In the run-up to the listing, the JSW Group, led by billionaire Sajjan Jindal, would also increase its stake in the JV to up to 51 percent at regular intervals, the sources said.

“JSW has invested Rs 5,000 crore as fresh equity in the JV and has plans to invest more via primary equity infusion, which will see its individual stake going up till it reaches 51 percent,” one of the sources told Moneycontrol.

JSW Group owns a 35 percent stake in the company, which makes both traditional and electric vehicles. Private equity fund Everstone Capital has an 8 percent stake and another 8 percent is owned by dealers via a trust and employees through a stock ownership plan. SAIC holds the remaining 49 percent.

JSW MG Motor India denied the development.

SAIC, the biggest Chinese government car maker, is estimated to have invested Rs 3,000 crore in India.

MG Motor sells SUVs under the Hector, Gloster, and Astor brands, besides ZS EV and Comet electric vehicles.

It has just over a percent of the market share in India, one of the fastest-growing car markets in the world, and has, so far, sold two lakh vehicles.

Like many Chinese-owned businesses in India, MG Motor is barred from securing fresh investments from its global parent for its India business, prompting a search for an investor.

In a joint statement on November 30, SAIC Motor and JSW Group said they would create strategic synergies by pooling resources for automobiles and new technology.

The JV plans to enhance local sourcing, improve charging infrastructure, expand production capacity, and introduce a broader range of vehicles focusing on green mobility.

MG India began commercial operations in India in 2019 by acquiring General Motors’ Halol plant in Gujarat, paying around $50 million to the American automaker.

Also Read: JSW Group announces JV with China MG Motor, aims to launch a new product every 3-6 months

Moneycontrol reported on February 20 that JSW Group had begun talks with Volkswagen Group to set up an electric vehicle (EV) manufacturing joint venture in India.

The JSW Group has also signed an agreement with the Odisha government to set up an integrated EV and battery manufacturing project in Cuttack and Paradip with an estimated investment of Rs 40,000 crore.