Tata Motors hives off Passenger Vehicle Business
The hiving off and transfer of Tata Motors’ entire passenger vehicle undertaking to Tata Motors Passenger Vehicles Ltd have come into effect from Saturday January 1 , 2022.The Company says the move will help in providing a differentiated focus for the PV and commercial vehicle businesses separately.
In a statement to the stock exchanges, Tata Motors said Tata Motors has settled the purchase consideration of ?9,417 crore payable for the purchase of Passenger Vehicle Undertaking under the scheme by allotment of 941,70,00,000 equity shares of Rs 10 each in Tata Motors Passenger Vehicles Ltd.
The scheme is effective from today, January 1, 2022. “Therefore, the entire Passenger Vehicle Undertaking of the company stands transferred under the scheme to Tata Motors Passenger Vehicles Limited with effect from January 1, 2022,” the company said.
In August last year, Tata Motors had received approval from the NCLT, Mumbai, to hive off its PV business into a separate entity.
In October last year, Tata Motors said it would raise USD 1 billion ( Rs 7,500 crore) in its passenger electric vehicle business from TPG Rise Climate at a valuation of up to USD 9.1 billion. Under the agreement, TPG Rise Climate along with its co-investor ADQ, will invest in a subsidiary of Tata Motors that will be newly incorporated.