This Tata company will cease to exist! The merger plan has received the green light

Tata Motors News: The merger of Tata Motors Finance with Tata Capital has received approval from their respective boards of directors. Tata Motors Finance Limited is a wholly owned subsidiary of Tata Motors Limited. The company said in a filing to the stock market that its board of directors has approved the merger of Tata Motors Finance Ltd with Tata Capital Ltd.

What the company said

The company said- The Boards of Directors of Tata Motors Limited (TML), Tata Capital Limited (TCL) and Tata Motors Finance Limited (TMFL) have today approved the merger of TMFL with TCL through the NCLT Scheme of Arrangement. Under the merger TCL will issue its equity shares to the shareholders of TMFL, resulting in Tata Motors effectively owning 4.7 per cent stake in the merged entity.

It will take 12 months

It said the transaction vehicle is in line with the company’s aim to exit non-core businesses and focus its capital expenditure on emerging technologies and products. Tata Motors said the plan will be subject to approval by SEBI, Reserve Bank, NCLT and all shareholders and lenders of TCL and TMFL and will take nine to 12 months to complete.

Share status

As for Tata Motors shares, they tumbled badly on Tuesday. On the second trading day of the week, the stock traded at Rs. closed at 904.15. The stock was down 4.88% from a day earlier. During trading, the shares traded at Rs. It fell to a low of 855.45.

market conditions

Counting trends show that the ruling Bharatiya Janata Party (BJP) is unlikely to win a clear majority on its own in the Lok Sabha elections. Seeing this trend panic spread in the stock market and there was massive selling all around. Due to this, both the BSE Sensex and NSE Nifty indices recovered slightly after falling eight per cent during the trading session but finally closed with heavy losses of around six per cent. The Sensex was down 4,389.73 points at 72,079.05 and the Nifty was down 1,379.40 points at 21,884.50.

Leave a Comment