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KKR eyes $400M EV stake in JSW MG Motor India
1 Jul
Summary
- KKR is in talks to invest up to $400 million in JSW MG Motor India.
- The joint venture aims for a $3 billion valuation, doubling its worth.
- This marks the first external funding for India's third-largest EV maker.
US private equity firm KKR is reportedly in negotiations to invest up to $400 million in JSW MG Motor India, a joint venture established in March 2024. This strategic investment is designed to fuel growth plans and capitalize on the increasing demand for electric vehicles in India.
The proposed investment includes primary equity infusion and a secondary share sale by SAIC Motor, the Chinese partner. JSW MG Motor India is aiming for a valuation of $3 billion, indicating a substantial increase in its worth since its formation. This would be the third-largest electric passenger carmaker's first round of external equity fundraising.
This potential deal signifies growing global investor confidence in India's EV sector, following a similar $1-billion infusion into Tata's EV arm. Negotiations are ongoing, and a transaction is not yet certain, as KKR and JSW have a history of collaborations on various financial initiatives. SAIC Motor's potential stake reduction was previously reported in May.
