Tata Motors Share Price Rose By 3% After Its Subsidiary Merger With Tata Capital Gets Approval By The Boards

ByPrashant Kumar

Automaker Tata Motors share price rose by 3.27 per cent to hit an intraday high of Rs 933.75 per share. Tata Motors’ stock opened at ₹952.95 and closed at ₹950.5 on the last trading day. The high for the day was ₹952.95, while the low was ₹855.45. 
The market capitalization stood at ₹346,513.79 crore. The 52-week high and low prices were ₹1065.6 and ₹538 respectively. The BSE volume for the day was 3,524,221 shares traded. Today, the stock price has been moving between levels of 928.92 and 916.92 in the past hour.
Tata Motors Finance Merger With Tata Capital 
 Tata Motors Finance Ltd is a step-down wholly-owned subsidiary of Tata Motors Ltd. The auto major in the filing stated that its board has also approved the merger of Tata Motors Finance Ltd with Tata Capital Ltd.
“The Board of Directors of Tata Motors Limited (TML), Tata Capital Limited (TCL) and Tata Motors Finance Ltd (TMFL) have today approved a merger of TMFL with TCL through an NCLT scheme of arrangement,” the filing said.
As consideration for the merger, TCL will issue its equity shares to the shareholders of TMFL resulting in Tata Motors effectively holding a 4.7 per cent stake in the merged entity, it said.
The transaction is also in line with the automaker’s stated objective of exiting non-core businesses and focusing its capital spends on emerging technologies and products, it added.
The scheme of arrangement will be subject to the approval of Sebi, RBI, and NCLT amongst others and all shareholders and creditors of TCL and TMFL and will take 9-12 months to complete, Tata Motors said. 
(With inputs from PTI)

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ByAbhishek Kumar

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