Saturday, December 2, 2023

MG Motor may dilute shareholding in India

Must read

NEW DELHI: MG Motor plans to dilute shareholding in its fully owned business in India as the company looks to tap the capital market or raise funds through a financial or strategic investor. It plans to begin work for a second factory beyond its current plant at Halol in Gujarat, MD & CEO Rajeev Chaba has said.
MG, a British brand owned by China’s SAIC, has been looking to raise funds for supporting expansion after facing delays in approval due to the higher government scrutiny on companies that have ownership in countries that share border with India.
Chaba said that MG – which faced I-T raids in November last year – wants to drive strong localisation across its operations. “Our theme is to Indianise more and more in terms of everything that we do. This includes localisation of management, localisation of products, higher local production, and even supporting and nurturing skilling,” he said.
To support long-term expansion, the company needs a credible financing option. “Beyond two years, we would need money for a second plant. For this, we will look to find a strategic partner or investor, and may be go for an IPO.”
MG plans to drive in a new electric car later this year in which would be the Rs 10-15 lakh price bracket.
“We are hopeful to become profitable and generate cash from this year onwards. To meet our short-term expansion and support new product launches, we will manage through working capital, external commercial borrowings and internal cash generation.”

Source link

More articles

Leave a Reply

Latest article