NEW DELHI, March 3 (Reuters) - MG Motor India, which is owned by China's SAIC Motor, plans to raise funds to develop its Indian electric mobility business, three sources told Reuters, as Chinese investments face increased scrutiny by the government in New Delhi.
MG Motor India may try to sell a stake of between 10% and 30% and is looking at options including issuing new shares or diluting SAIC's holding, one of the sources familiar with the plans said, adding that it may even create a separate unit for its electric vehicle (EV) business in India.
The company is talking to private equity funds which are increasingly interested in investing in the fast-growing electric vehicle market, two of the sources said, as countries shift their economies away from fossil fuels.
"Everyone is buying into the EV story because it gives investors an ESG bet, and MG is trying to pitch itself as an EV play," the first source told Reuters.
MG Motor India has yet to finalise how much money it plans to raise, which will depend on the valuation of the Indian business and its growth plans, the sources, who asked to remain anonymous because the talks are private. READ MORE...
