Tata Motors shares end marginally lower at Rs 1,017

Tata Motors shares continue to hit upper circuit after company’s board of directors approved a plan to demerge the automaker into two separate listed entities.

Tata Motors share price falls (File Image)

On Wednesday, shares of Tata Motors closed 4.25 points, or 0.42 per cent lower at 1,017.65.

Tata Motors shares continue to hit upper circuit after company’s board of directors approved a plan to demerge the automaker into two separate listed entities. One of these companies will handle Tata’s commercial vehicles business, leaving passenger vehicles businesses, including the conventional internal combustion engine vehicles, electric vehicles, and the Jaguar-Land Rover division for the other.

“The demerger will be implemented through an NCLT scheme of arrangement and all shareholders of TML will continue to have the identical shareholding in both the listed entities,” the company said

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The planned demerger will be implemented through a National Company Law Tribunal (NCLT) Scheme of Arrangement. Moreover, all shareholders of Tata Motors continuing to have identical shareholding in both the listed entities.

Tata Group believes that its passenger vehicles (PV) segment can be self-sustaining, and the move to demerge into two entities can lead to better value-creation for its automobile arm.

“Over the past few years, the commercial vehicles (CV), passenger vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses of Tata Motors have delivered a strong performance by successfully implementing distinct strategies,” the company added.

These businesses have been operating independently under their respective CEOs since 2021. JLR is a subsidiary of Tata Motors in the UK.

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“Tata Motors has scripted a strong turnaround in the last few years. The three automotive business units are now operating independently and delivering consistent performance. This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility,” Chairman N Chandrasekaran said.

Premji said that Wipro would partner with the Government "to find a lasting solution for Bengaluru's mobility challenges".

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