look news india
Tata Motors is going to separate its commercial vehicle (CV) and passenger vehicle (PV) businesses. The company is also considering merging the electric vehicle (EV) business with the passenger vehicle unit. Let us tell you that on March 4, Tata Motors had announced to divide its business into two separate companies. One company will handle the commercial vehicle business and related investments, while the other will include the passenger vehicle business, EV unit, Jaguar Land Rover (JLR) and related investments.
merger proposal
According to sources, the proposed merger of the PV business (Tata Motors Passenger Vehicles Limited) of electric vehicle company Tata Passenger Electric Mobility Limited is being proposed to increase liquidity for existing investors and future investors like TPG. Sources say that since Tata Motors is planning to make its passenger vehicle segment completely electric in the future, there will be no need to make a separate EV unit.
electric vehicle
In October 2021, Tata Motors announced that TPG Rise and its co-investors would invest Rs 7,500 crore (about $1 billion) for an 11-15 percent stake in electric vehicle subsidiary ADQ at a valuation of $9.1 billion. Tata Motors received the second and final tranche of Rs 3,750 crore from both the investors in January 2023.
demerger plan
The carmaker announced the demerger plan on March 4, saying the merger is a logical outcome of the earlier acquisition of passenger vehicle and commercial vehicle businesses in 2022 and will allow the respective businesses to pursue their respective strategies and achieve greater growth sooner. Will make you stronger.
share holding
In recent years, Tata Motors' electric vehicles, passenger vehicles (PV+EV) and Jaguar Land Rover (JLR) businesses have implemented separate growth strategies and from 2021, these businesses will operate more independently from their respective CEOs. are doing. The demerger plan will be implemented through the NCLT arrangement scheme and all shareholders of Tata Motors will have equal stake in both the listed entities. Regulatory approvals may take 12-15 months to complete the merger.