Jaguar Land Rover IPO could be a bonanza for shareholders

For those who dumped their stocks of Jaguar Land Rover (JLR) back in 2008, now may be a time for regret given the upcoming IPO for the automaker could prove to be a jackpot for those still holding on to their shares.

The luxury automaker that Tata Motors bought back then for just $2.5 billion from Ford Motors is now worth $14 billion, according to the average estimate of three analysts surveyed by Bloomberg news, reports The Economic Times.

This estimation makes Jaguar Land Rover more valuable than even Italian giant Fiat or Japanese auto major Suzuki Motors.

After acquiring the struggling carmakers, Tata Motors had hired KPMG International and Roland Berger Strategy Consultants to aid cost cutting at the luxury carmaker that is known for its premium products.

“By listing Jaguar Land Rover, Tata Motors will allow investors who aren’t focused on India to invest in the company,” The Economic Times quoted Taina Erajuuri, a Helsinki-based money manager at FIM Asset Management as saying.

Meanwhile, JLR also showed record sales performance in the first quarter of 2012 with China sales continuing to lead the way. JLR China President Bob Grace described the performance as “incredible” and “stunning” chinadaily.com reported.

“Following a spectacular year of growth in 2011, the company successfully sustained its strong momentum well into the first quarter of 2012 by selling nearly 18,000 Jaguar and Land Rover vehicles, a new record high for its quarterly sales in this market,” he said to chinadaily.com.

JLR’s overall performance in March also beefed up Tata Motor’s numbers.