Updated Jun 4, 2024 | 05:27 PM IST
Tata Motors Demerger: Auto major Tata Motors informed that the authorised share capital of the subsidiary will be Rs 50,00,000 divided in to 25,00,000 equity shares of Rs 2 each. The size/turnover is, however, not Applicable since the company is yet to be incorporated. Tata Motors will have 100 per cent holding in TMLCVL.
Tata Motors Demerger: BIG update ahead of two-way split!
Tata Motors Demerger: Ahead of its big two-way split, Tata Group’s auto arm Tata Motors has announced the incorporation of wholly owned subsidiary. Just last week Tata Motors Executive Director Girish Wagh said that the proposed demerger will help the commercial vehicle vertical become more agile and capitalise on the opportunities available globally.
The Tata Group company had in March this year announced the mega demerger of its commercial and passenger vehicle segments into 2 separate listed entities to better capitalise on growth opportunities.
Tata Motors had said that the commercial vehicle (CV) business and its related investments would be housed in one entity, while the passenger vehicle (PV) business, including EVs, Jaguar Land Rover (JLR) and related investments, will fall under a separate listed entity.
Tata Motors Demerger Update
In a fresh update ahead of the big two-way split comes into effect, the Tata company on Tuesday announced the creation of a wholly owned subsidiary with a proposed name as TML Commercial Vehicles. “The Board of Directors has approved incorporation of a Wholly Owned Subsidiary with the proposed name as “TML Commercial Vehicles Limited” or such other name as may be approved by the Ministry of Corporate Affairs, Government of India.”
Auto major Tata Motors informed that the authorised share capital of the subsidiary will be Rs 50,00,000 divided in to 25,00,000 equity shares of Rs 2 each. The size/turnover is, however, not Applicable since the company is yet to be incorporated. Tata Motors will have 100 per cent holding in TMLCVL.
“TMLCVL is proposed to be incorporated with a paid-up capital of Rs 10,00,000 comprising of 5,00,000 equity shares of face value Rs 2 each fully paid-up in cash,” Tata Motors said.
According to the company, the proposed demerger will help in securing synergies across the PV, EV and JLR, particularly in the areas of EVs, autonomous vehicles, and vehicle software.
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