Indian car manufacturer Tata Motors wants to raise as much as $1 billion through a stake sale in its electric vehicle business and is already in talks with private equity investors and sovereign wealth funds on a possible deal.

Local publication, The Economic Times, states that Tata plans to sell a significant minority stake in the business at a valuation of around $10.5 billion. Current investors include the likes of the Abu Dhabi Investment Authority, Saudi Arabia’s Public Investment Fund, Temasek Holdings from Singapore, KKR, General Atlantic, and Mubadala Investment Company, Auto News reports.

It is understood that Tata Motors wants to use the majority of the proceeds to retire part of its outstanding debt. In addition, it will use a small portion to infuse into the EV business as primary equity.

Read: Tata Previews Electric SUV Lineup Including New Sierra EV

 Tata Looking To Raise $1 Billion By Selling Stake In Its EV Business
Tata Sierra EV Concept

The Indian car manufacturer previously raised $1 billion from TPG and an Abu Dhabi-based state holding company in 2021 for its EV unit at a valuation of $9 billion.

Tata recently showcased four electric concept cars at Auto Expo in Delhi, all of which are set to spawn production models. The first was the Sierra EV which takes the form of a five-door SUV and has a particularly rugged design but is still complete with plenty of modern touches like an LED light bar up front and flush door handles.

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A second intriguing concept introduced by Tata was the Harrier EV. It takes the form of an electric version of the Harrier compact SUV but features a new design with overhauled front and rear fascias. It will be based on an electric version of the OMEGA-Arc platform, derived from the D8 platform of the Land Rover Discovery Sport. Other EVs being developed by Tata include the Curvv coupe-SUV and the Avinya, also previewed as a concept.

 Tata Looking To Raise $1 Billion By Selling Stake In Its EV Business
Tata Harrier EV Concept