Those who held on may be sitting on a jackpot.
The two British luxury car brands are worth $14 billion, according to the average estimate of three analysts surveyed by Bloomberg News, more than Fiat or Suzuki.
With a planned $12 billion in capital spending and product development over five years and a proposed partnership with Chery Automobile to expand in China, conditions are right for an initial share sale, according to FIM Asset Management Ltd. and Kim Eng Securities Pvt.
But while the pressure is mounting for Tata to launch an IPO for the two British luxury brands, the company has given no indication that this is being planned.
Tata Motors expects to fund Jaguar Land Rover's capital expenditure and product development needs through internal cash accruals, Debasis Ray, a company spokesman, said in an e-mail. "However, we will continue to consider opportunities for capital structure management as done in the past."
After acquiring Jaguar and Land Rover from Ford, Tata Motors hired KPMG International and Roland Berger Strategy Consultants to help cut costs at the luxury unit.
The company introduced new models including the new Jaguar XJ sedan, the Range Rover Evoque compact SUV and the Jaguar XF sedan and began targeting new emerging markets such as Russia and China.
"By listing Jaguar Land Rover, Tata Motors will allow investors who aren't focused on India to invest in the company," said Taina Erajuuri, a Helsinki-based money manager at FIM Asset Management that oversees about $1.2 billion including Tata Motors shares. "The new models planned for JLR require a large amount of investment, especially if the company wants to follow on the success of the Evoque."
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