TVS Motor Company shares reach record high on positive buying trend
In a bullish trend, shares of TVS Motor Company saw good buying today, reaching a record high. This trend is due to positive stand taken by brokerages. TVS Credit, the finance arm of TVS Motor, has seen heavy investment, and some brokerage firms have raised the target price of TVS Motor due to Swiss e-Mobility Group’s purchase of an additional 25% stake. According to brokers, the share price could rise almost 12% from the current level. Currently, the share price of TVS Motor Company is trading at Rs 1340.10, up 0.21% on the BSE. Intraday, it reached a record high of Rs 1384.55.
TVS Credit Services’ 9.7% stake will be acquired by private equity and venture capital investment firm Premji Invest for Rs 747 crore. Under this deal, Premji Invest will invest in TVS Credit both through primary and secondary investment. As a result, TVS Credit has received an investment of Rs 480 crore in equity from Premji Invest. The primary capital will be used to expand the company in new markets, increase the channel partner network, and digitize the business. This investment will reduce pressure on the company to obtain necessary funding for growth. In the previous financial year 2022-23, TVS had invested Rs 500 crore to expand its business.
TVS Motor (Singapore), a subsidiary of TVS Motor Company, has agreed to purchase a 25% additional stake in Swiss e-Mobility Group (SEMG). For this, the company will buy shares from the existing shareholders. SEMG is a subsidiary of TVS Motor (Singapore) and sells branded electric bikes in the B2B and B2C segments. There are 30 retail stores in Switzerland and Germany, and it has revenue of nearly $10 million. After buying 75% of the shares in January 2022, TVS Motor Company will now pay Rs 180 crore to purchase the remaining 25% stake from SEMG. SEMG will come completely under the ownership of TVS Motor Company after this.
Bank of America Securities (BoFA Securities) has raised the target price of TVS Motor Company. BoFA Securities has recommended investing at a target price of Rs 1500 and gave it a buy rating. Meanwhile, Macquarie has given an outperform rating at a target price of Rs 1418.
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