MG Motor, a Chinese-British brand, has recently unveiled its future roadmap for the Indian market and announced its plan to dilute its majority stake in the country in order to raise funds.
Several reports suggest that potential investors, including Reliance Industries, Hero Group, Premji Invest, and JSW Group, are currently engaged in discussions with MG Motor to acquire the stake, and the deal is expected to be finalized before the end of the year.
The dilution process will occur in a phased manner.
MG Motor has been trying to raise funds from its parent company SAIC for the past two years. However, due to border tensions between India and China, the company is facing hurdles as the Indian government modified its regulations on foreign investments to stop Chinese firms from taking over Indian companies without permission. This means that any investment from countries that share a land border with India now needs government approval.