News: The company’s subsidiary i.e. Tata Passenger Electric Mobility Limited (“TPEML”) has executed the Ford’s Sanand (Gujarat) Plant purchase for a total consideration of Rs 726 crore (exclusive of taxes).
View: We believe the amount paid for the said acquisition is very competitive in the favour of Tata Motors with our anticipation of the deal value pegged at in excess of Rs 2,000 crore. With its own manufacturing capacity nearing saturation, this acquisition is timely and is a sure shot win for the company. It will unlock a state-of-the-art manufacturing capacity of 300,000 units per annum which is scalable to 420,000 units per annum. We expect the transaction to be eps accretive in nature for Tata Motors with payback pegged at <2 years.
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