Simla Investment：SAIC MGI introduces Indian strategic investors, or increases net profit of 50-7 billion yuan

On the evening of April 7, SAIC Group announced that the company's holding subsidiary MG India (MGI) intends to introduce investors such as JSW Singapore through equity transfer and capital increase and shareholding.

Among them, JSW Singapore subscribed for MGI 1.012 billion shares held by Mumbai Automobile Hong Kong Investment Co., Ltd., a subsidiary company subsidiary of 26.51 billion Indian rupees (approximately 2.256 billion yuan), and subscribed for MGI issuance for 9.26 billion Indian rupees (approximately RMB 788 million).354 million shares.

Indoedge India FUND (hereinafter referred to as: IIF) for 8.18 billion Indian rupees (approximately 696 million yuan), subscribed for 312 million shares issued by MGI; dealer trusts were subscribed by 3.07 billion Indian rupees (about 26.1 billion yuan) to subscribe to MGI117 million shares; employee shareholding plans to subscribe for 195 million shares issued by MGI for 5.11 billion Indian rupees (approximately 435 million yuan).

After the transaction is completed, SAIC Group is expected to increase net profit of 5 billion to 7 billion yuan.In terms of equity, SAIC reserves 49%of the equity of the joint venture, JSW accounts for about 35%of the equity, IIF, dealer trust and employee shareholding plan holding 8%, 3%, and 5%, respectively.No voting right.

According to the data, the JSW Group is an Indian multinational corporate giant. It is headquartered in Mumbai and is listed on the Indian Stock Exchange.

Engage in metal and mineral import and export business.MGI was founded wholly in 2017 by SAIC Group and registered in Dergang, India.

On November 30, 2023, SAIC Group and JSW Group signed a strategic cooperation agreement in London, England.SAIC will introduce JSW Group as a strategic investor to further support MG India's market share through capital increase and share expansion.

SAIC and steel giants are mainly to grab the Indian market.According to S & P Global Mobility, the output of Indian pure electric passenger cars increased by 81.6%year -on -year in 2024 to approximately 187,000 units; it is expected that by 2025, this number will further increase to about 375,000 units,By 2030, it will increase to approximately 1.41 million vehicles.

With the back of the big brother, MGI sales have risen year by year. From 16,528 vehicles in 2019 to 2023 sales are 62010 units, ranking 8th in the Indian marketSimla Investment. Among them, the new energy vehicle ranks second in the market.India's single brand overseas sales champion.

According to conservative estimates of SAIC Group, the sales volume of the Indian passenger car in 2030 will reach 6.6 million vehicles, and new energy vehicles account for more than 30%.SAIC Group will strive to rise to the fifth place in the local market around 2030.Varanasi Stock

However, MGI is still in a state of loss.As of December 31, 2023, the total assets of MG India were 60.785 billion rupees, and the net assets were -7.381 billion rupees. In 2023, operating revenue was 88.54 billion rupees, with a net profit of -4869 billion rupees.

It is worth mentioning that currently going to sea has become the growth point of SAIC Group.The financial report shows that in 2023, SAIC Group's overseas market sales vehicles were 1.208 million, an increase of 18.8%year -on -year, and maintained the first domestic industry for 8 consecutive years.Among them, independent brand overseas sales accounted for nearly 92%, and new energy vehicles sales accounted for nearly 24%.

Jaipur Stock