Tata Motors Finance Ltd (TMFL) on Wednesday said it plans to de-merge its non-banking finance business into Tata Motors Finance Solutions Ltd (TMFSL) on a going concern basis.

A meeting of the board of directors on October 3 will consider a scheme of arrangement between TMFL and TMFSL under Sections 230 to 232 of the Companies Act, 2013, according to TMFL’s regulatory announcement

The scheme of arrangement relates to an internal realignment of the company’s businesses involving, inter-alia, de-merger of TMFL’s non-banking finance business into TMFSL on a going concern basis, it added.

Currently, TMFL and TMFSL are non-banking financial companies (NBFCs), with eachbeing a subsidiary of TMF Holdings Ltd (TMFHL), a core investment company held by Tata Motors.

As per the current business arrangement, the new vehicle financing business of TMFHL is undertaken by TMFL, while the dealer/vendor financing business and used vehicle refinance/repurchase is undertaken by TMFSL.