1:2 Split Soon: Tata Group's Auto Giant Signs MoU With HPCL, Announces Big Rewards For Employees; BUY?

Tata Group's automobile giant, Tata Motors' share price continued to hover around its 52-week high levels on Thursday. Apart from the buzz that Tata Group is coming up with an 8 IPO bonanza for investors, Tata Motors is also in focus after it joined hands with leading PSU Hindustan Petroleum Corporation (HPCL) to set up 5,000 EV charging stations. Also, the auto player rewarded its employees via ESOPs.

Tata Motors-backed Tata Passenger Electric Mobility which is known for pioneering India's electric vehicle revolution, inked an MoU with HPCL for establishing public charging stations across India.

The collaboration will leverage HPCL's widespread fuel station network and TPEM's insights from over 1.2 lakh Tata EVs on Indian roads, to set up chargers at locations frequently visited by Tata EV owners. Additionally, HPCL will gather insights on charger usage to improve the customer experience, it said.

Balaje Rajan, Chief Strategy Officer, Tata Passenger Electric Mobility Ltd. and Tata Motors Passenger Vehicles Ltd. said, "As the adoption of EVs increases, the availability of widespread and dependable charging infrastructure will play a crucial role in making EVs mainstream in India. This strategic partnership with HPCL emphasizes our dedication to advancing India's EV ecosystem in which the growth of charging infrastructure plays a pivotal role."

Rajan added, "This collaboration is essential for facilitating infrastructure development to support the expanding EV customer base. Leveraging TPEM's extensive insights into EV usage and HPCL's extensive nationwide network, this partnership has the potential to transform the charging infrastructure landscape in the country."

Both Tata Motors and HPCL aim to explore synergies between the two companies to encourage more people to adopt electric vehicles in the country. The two companies are also exploring the introduction of a convenient payment system through a co-branded RFID card, which will make the charging experience hassle-free.

Further, HPCL is to install 5,000 electric vehicle charging stations by December 2024.

With four products in its portfolio, TPEM has led the rise of the EV ecosystem in the country, right from introducing its first EV-exclusive store in Gurugram to working with various charge point operators to grow India's charging infrastructure. On the other side, HPCL has installed a total of 3,050 EV charging stations, including battery swapping stations, across the country.

Currently, Tata Motors EV company commands a market share of over 68% in electric passenger vehicles, while HPCL boasts a nationwide network of over 21,500 fuel stations and is committed to a sustainable future.

Tata Motors ESOPs:

On March 27, Tata Motors announced good news to its employees as its Allotment Committee approved the allotment of 487,368 Ordinary Shares of the face value of Rs 2 each under the Scheme to the eligible employees under exercise of stock options at an exercise price of Rs 345 per share.

Accordingly, the paid-up Ordinary share capital of the Company stands increased from ₹6,64,69,80,771 divided into 3,32,32,51,633 Ordinary Shares of Rs 2 each to Rs 6,647,955,507 divided into 3,32,37,39,001 Ordinary Shares of ₹2 each (considering the amount of subscribed share capital plus shares forfeited less calls in arrears).

Tata Motors Split:

Tata Motors is splitting its business in the ratio of 1:2. The auto giant will soon be demerged into two separate listed companies housing A) the Commercial Vehicles business and its related investments in one entity and B) the Passenger Vehicles businesses including PV, EV, JLR and its related investments in another entity.

Tata Motors Share Price:

On BSE, during the opening bell of March 28th, Tata Motors' share price rose by nearly a per cent to hit an intraday high of Rs 986.75 apiece.

The stock is near its 52-week high of Rs 1,065.60 apiece, while trading higher by 146% from its 52-week low of Rs 401.10 apiece.

Tata Motors Target Price:

This week, CLSA maintained its 'outperform' on Tata Motors and recommended a target price of Rs 1,133. The leading global brokerage expects Tata Motors' profitability to be robust, especially after its luxury-car brand Jaguar Land Rover reported an increase of 10% in volumes between January to February 2024 compared to the same period a year ago.