Tata Demerger: Tata Motors will split its business into two, both companies will be listed on the stock market.

Tata Group, one of the largest business houses of the country, has announced a big company of its own and soon this company is going to be divided into two parts. We are talking to you about Tata Motors, the company has proposed de-merger. Under this, the commercial vehicle and passenger vehicle business will be separated and then the two companies will be listed in the stock market.

Commercial-passenger vehicle units will be different

According to information shared by Tata Motors on Monday, it will split its business into two separate listed companies under this de-merger. One unit will comprise the commercial vehicle (CV) business and its related investments, while the other unit will comprise the personal vehicle (PV), electric vehicle (EV), JLR and its related investments. The de-merger will be implemented through the NCLT regime scheme, the stock exchange filing said.

Shareholders have a stake in both companies

After the de-merger, all shareholders of Tata Motors Ltd will continue to hold equal stakes in both the listed companies. On behalf of the company, it said that over the past few years, Tata Motors' commercial vehicles, passenger vehicles and Jaguar Land Rover businesses have delivered strong performances by successfully implementing various strategies. From the year 2021, these three businesses are functioning independently under their respective CEOs.

What did the chairman of Tata Sons say on the de-merger?

Speaking on this major demerger in the Indian automobile sector, Tata Sons Chairman N Chandrasekaran said that Tata Motors has undergone a strong transformation over the past few years. The three automotive business units now operate independently and continue to deliver strong performance. He said that the demerger will help them to better utilize the opportunities provided by the market by increasing their focus.

Tata Motors shares rise

According to N Chandrasekaran, splitting a company into two units will give our customers a better experience. This will provide better growth prospects for our employees and better value for our shareholders. It may be noted that the shares of Tata Motors Ltd have been performing steadily for the past few days. On Monday, the stock traded on the green mark at Rs. closed at 988.90. Tata Motors share rose 0.56 percent. On Monday, it was Rs. touched an all-time high of 995. The market capitalization of the company is Rs 3.62 lakh crore.