Tata Motors, the global automobile manufacturer saw its shares jump 4% in today’s early trade, surpassing the significant milestone of ₹1000 to reach ₹1027 per share.
Tata Motors, the global automobile manufacturer saw its shares jump 4.52% in today’s early trade, surpassing the significant milestone of ₹1000 to reach ₹1031.90 per share.
This notable uptick in share value followed investor enthusiasm spurred by the company’s strategic decision to demerge its commercial and passenger vehicle segments into two distinct listed entities. This move aims to enhance the company’s ability to capitalise on growth opportunities effectively.
On Monday, the company approved a demerger proposal for Tata Motors, splitting it into two distinct listed entities. The first entity will encompass the Commercial Vehicles business and its associated investments, while the second will include the Passenger Vehicles segment, consisting of PV, EV, JLR, and their related investments.
Over the past few years, the Commercial Vehicles (CV), Passenger Vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses of Tata Motors have delivered a strong performance by successfully implementing distinct strategies. Since 2021, these businesses have been operating independently under their respective CEOs, the company said in its exchange filing.
The demerger will be implemented through an NCLT scheme of arrangement, and all shareholders of Tata Motors shall continue to have identical shareholding in both of the listed entities.
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This article is originally published on Hindustantimes.News!
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