Concurrently, Tata Motors Passenger Vehicles (TMPV) will merge with the existing listed company, leading to two distinct publicly traded entities for the CV and Passenger Vehicle (PV) businesses.
Under the approved scheme, shareholders of Tata Motors will receive one share of the newly formed TMLCV for every share they hold in Tata Motors, maintaining a 1:1 share entitlement ratio.
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This move aims to empower the respective businesses to pursue their unique strategies with greater agility, ultimately enhancing shareholder value. The demerger transfers all assets, liabilities, and employees related to the CV business to TMLCV.
The existing Passenger Vehicle business, the Electric Vehicle (TPEM) business, and JLR will be merged into TML, the current listed entity. As a result, TML will focus solely on the CV business, while TMPV will encompass the PV, EV, and JLR businesses.
This strategic realignment is designed to improve operational efficiency and accountability, positioning both entities for future growth. The scheme is subject to approval from shareholders, creditors, and regulatory authorities.
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The Board’s decision follows an initial announcement made on March 4, 2024, and aligns with the provisions of Sections 230-232 of the Companies Act, 2013. The Scheme is subject to all the necessary shareholder, creditor and regulatory approvals, which can take around 12-15 months to complete.
PwC Business Consulting Services LLP has provided the share entitlement report for the transaction, with SBI Capital Markets acting as fairness opinion provider for the share entitlement ratio for the demerger.
AZB & Partners are the legal advisors to the transaction. Deloitte Touche Tohmatsu India LLP is the tax advisor for the transaction.
Shares of Tata Motors Ltd ended at ₹1,144.60, down by ₹11.75, or 1.02% on the BSE.
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