Jaguar Land Rover is one of the most globally-known manufacturers of luxury vehicles, up there with BMW, Porsche, and Mercedes-Benz.
After a struggling period stemming from the global chip shortage, JLR is slowly but surely earning enough profit to sustain itself for the next few years. It aims to become debt-free by the end of next year, leading investors to believe an IPO is soon underway.
This article discusses everything we know about the Jaguar Land Rover IPO so far, including its valuation and profit margins.
What Is Jaguar Land Rover?
Jaguar Land Rover Automotive, also known as JLR, is a UK-based luxury carmaker. It’s a subsidiary of Tata Group and is responsible for the development and sale of Jaguar and Land Rover vehicles.
Jaguar and Land Rover first came together in 1968 as part of the British Leyland conglomerate, then again as Ford Motors and BMW subsidiaries.
Both marques fell under the Tata Motors subsidiary in 2008, where they operated independently until 2013.
By that time, Jaguar and Land Rover merged into a single company. They took on the name Jaguar Land Rover Limited and then later Jaguar Land Rover Automotive PLC.
Jaguar Land Rover generated upwards of £18 billion ($20 billion) in 2022, a 7% decline from 2021. The company has sold more than 370,000 units.
Currently, the company has a valuation of around $35 billion.
When Is the Jaguar Land Rover IPO?
Jaguar Land Rover and its Indian-based subsidiary Tata Group have yet to reveal an official Initial Public Offering (IPO) date.
However, experts state that the company can’t feasibly get out of a listing because it’s burning more money than it can earn—especially as it started expanding its electric-vehicle projects.
Jaguar Land Rover spends nearly £700 million (approximately $900 million) a quarter, putting the company in debt.
Tata Technologies has already sought approval from India’s market regulators for an IPO and plans to sell as many as 95 million shares. Approximately 23.6% of these shares belong to Jaguar Land Rover.
Tata Technologies didn’t mention an IPO date, but investors believe it’ll happen sometime in 2024 or 2025.
How Does Jaguar Land Rover Make Money?
Jaguar Land Rover makes most of its money through luxury vehicle sales and short-term investments. The average price of a JLR vehicle falls between $60,000 to $100,000, with some models costing as much as $200,000.
JLR reported a profit of £265 million ($326 million) before tax by the end of 2022, compared to the £9 million shortfall in 2021.
Though it’s still not making as much money as it burns, JLR continues to be cautiously optimistic for the future. Tata Motors is planning to invest $2.2 billion in the development of electric vehicles over five years with the help of current investors.
Jaguar Land Rover has yet to confirm an exact IPO date but plans to go public are underway. Experts believe that JLR will potentially go public sometime in 2024 or 2025 once it has developed a line of luxury EVs.
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