MG Motor India to dilute shareholding to support expansion plans

MG might launch an IPO to secure funding for its second manufacturing unit.

MG Motor India is reportedly looking to tap into the capital market or raise funds through a financial or strategic investor to support its expansion plans. 

According to a media report, MG plans to dilute shareholding in its fully-owned Indian subsidiary. However, the process has been delayed due to higher government scrutiny.

MG plans to set up a second manufacturing unit in India. The brand plans to 'Indianise' more through the localization of management and products. CEO Rajeev Chaba stated that the company needs a credible financing option to support long-term expansion. It could also launch an IPO to secure funding. 

Earlier this month, MG launched the facelift version of the Hector and Hector Plus SUVs. The carmaker is now gearing up to introduce a more mass-market electric car.

Source: TOI