Tata Motors’ shareholders have approved hiving off its passenger vehicles business into a separate entity, the company said on Monday.

The shareholders of Tata Motors voted at a meeting on March 5 to approve the Scheme of Arrangement between Tata Motors Limited, the transferor company, and TML Business Analytics Services Limited, the transferee company, and their respective shareholders under Section 230-232 of the Companies Act, 2013.

In a regulatory filing, Tata Motors said 2,154,138,392 votes were polled in total, out of 2,153,239,294 votes or 99.958 per cent of the total votes were in favour of the resolution. A total of 688,610,054 public institutional shareholders voted, with all of them in favour of the resolution. 152,076,906 shareholders in the public non-institutional shareholders category voted, out of which 151,177,808 votes or 99.409 per cent were in favour of the resolution.

Also read: We are targeting a double-digit market share in PVs: Tata Motors’ Shailesh Chandra

In late March 2020, Tata Motors had said that it will spin off its passenger vehicle business, which includes electric vehicles, into a separate subsidiary. Tata Motors had said the move was aimed at providing differentiated focus for its passenger and commercial vehicle businesses and help each of them realise their potential. It had also said the move is a first step in its plans to “secure mutually beneficial strategic alliances for the domestic PV business and help secure its long-term viability.”

This move comes even as Tata Motors posted sales of 27,225 passenger vehicles in February 2021, a 119 per cent increase year-on-year. While the company had a market share of 4.8 per cent last year in PVs, this increased to 8.9 per cent in January 2021.

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