Tata Motors Finance Unit soon to combine with Tata Capital for strategic deal
Tata Motors, the country’s biggest automaker by income, on Tuesday (June 4) reported that its vehicle funding unit will converge with non-banking finance organization - NBFC Tata Capital in an offer trade deal.
According to an exchange filing, shareholders of Tata Motors Finance will receive 37 Tata Capital equity shares for every 100 equity shares held under the proposed plan. The leading group of Tata Motors, Tata Capital, and Tata Motors Finance have supported the consolidation through a National Company Law Tribunal - NCLT scheme agreement.
It will likewise take around nine months to a year for the consolidation to be finished, Tata Motors said in an explanation.
When the deal is done, Tata Motors will own 4.7% of the merged company. “The merger will not have any adverse impact on customers or creditors of TMFL,” the organization said.
Tata Capital offers vehicle credits as well as home and instruction advances. Portions of Tata Motors finished 4.79% at â¹904.95 each on the NSE today.
In the month of April, Tata Motors has entered into a strategic partnership with South Indian Bank to provide financing solutions for its commercial vehicle customers and dealerships. The Memorandum of Understanding (MoU) between the two companies aims to offer comprehensive financing options across Tata Motors' entire commercial vehicle portfolio.
