BAJAJ BROKING
Tata Motors announces merger of Tata Motor Finance with Tata Capital where Tata Motors will hold a 4.7% stake. The transaction is expected to be completed in 9-12 months. Tata Capital's AUM is ₹1.6 lakh crore, while Tata Motors Finance at ₹32,500 crore.
Tata Motors revealed plans for merging Tata Motor Finance with Tata Capital, aligned with its strategy to divest non-core businesses and prioritise investments in emerging technologies.
Explore: Tata Motors
The merger entails Tata Capital issuing equity shares to Tata Motor Finance shareholders, resulting in Tata Motors holding a 4.7% stake indirectly through its subsidiary TMF Holdings Limited.
In FY24, Tata Capital reported a net profit of ₹3,150 crore, significantly higher than Tata Motors Finance's ₹52 crore. Tata Capital boasts an asset under management (AUM) of ₹1.6 lakh crore, while Tata Motors Finance manages ₹32,500 crore.
The merger process is subject to regulatory green lights from SEBI, RBI, the National Company Law Tribunal (NCLT), and consent from shareholders and creditors. The entire procedure is estimated to take approximately 9-12 months.
Tata Capital, primarily operating in retail, SME, and corporate segments, aims to expand its presence in commercial vehicles (CV) and passenger vehicles (PV) financing post-merger. The move is expected to provide growth opportunities for employees and enhance customer offerings through innovative products and digital solutions.
E&Y, ICICI Securities, and Wadia Ghandy & Co advise Tata Capital, while PwC, Axis Capital, and AZB & Partners represent Tata Motors Finance in the transaction.
Tata Motors reassures customers and creditors of Tata Motors Finance that the merger will not negatively impact them, emphasising a seamless transition and continuity in service provision.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Share Market Today | Gift Nifty Signals 100-Point Gap Down, Nifty to Consolidate
06 Sep, 2024 | 4 Min. read
KEC International Secures ₹1,423 Cr Transmission Line Order in Saudi Arabia
06 Sep, 2024 | 1 Min. read
Ashoka Buildcon’s Viva Highways Monetises Pune Land for ₹453 Crore
06 Sep, 2024 | 2 Min. read
Peak Partners To Sell 11% Stake in Indigo Paints via Block Deal
06 Sep, 2024 | 2 Min. read
US Initial Jobless Claims Drop to 227,000 in August.
06 Sep, 2024 | 1 Min. read
Commodities Market Today | WTI Crude Steady at $69.18, Gold Rises 0.8% to $2,546
06 Sep, 2024 | 1 Min. read
Gold Rate Today | Gold Rises 0.8% to $2,546, Silver Gains 2% to $29.14
06 Sep, 2024 | 2 Min. read
Vodafone Idea Share Price Falls 11% After Goldman Sachs Report
06 Sep, 2024 | 1 Min. read
Suzlon Energy Share Price Rises After Corporate Office Sale
06 Sep, 2024 | 1 Min. read
Why is the Stock Market Down Today? Key Factors Explained
06 Sep, 2024 | 1 Min. read
Sona BLW Precision Forgings Plans ₹2,400 Crore QIP at ₹675-700 per Share
05 Sep, 2024 | 1 Min. read
Commodities Market Today | Crude Oil Drops, Brent Hits Low; Gold and Silver Rise
05 Sep, 2024 | 1 Min. read
Analysis to Become a Pro Investor
28 Dec, 2023 | 4 Min. read
Women In Real Estate Investing (Investree)
28 Dec, 2023 | 5 Min. read
How To Check Prudent Corporate Advisory IPO Allotment Status
27 Dec, 2023 | 3 Min. read
How To Boost Credit Score? – Steps to Improve Creditworthiness
27 Dec, 2023 | 4 Min. read
Advantages and Disadvantages of Opening Multiple Demat Accounts
26 Dec, 2023 | 4 Min. read
7th CPC LTC: Leave Travel Concession Rules for Central Government Employees
26 Dec, 2023 | 4 Min. read
7th Pay Commission: House Building Advance (HBA) Interest Rate FY 2023-24
26 Dec, 2023 | 5 Min. read
The Future of Trading: Exploring Bajaj Broking’s Demat Features
26 Dec, 2023 | 6 Min. read
7th Central Pay Commission Cpc Fitment Table
23 Dec, 2023 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading