Merger of Tata Motors Finance with Tata Capital gets board approval

Tata Motors Finance Merges with Tata Capital, Creating 4.7% Stake for Tata Motors.

Expert Analysis:

• Merger Approval: The merger of Tata Motors Finance (TMFL) with Tata Capital (TCL) was approved by their respective boards.

• Ownership Structure: TMFL is a step-down wholly-owned subsidiary of Tata Motors Ltd.

• Equity Shares Issuance: TCL will issue equity shares to TMFL shareholders, resulting in Tata Motors holding a 4.7% stake in the merged entity.

• Strategic Alignment: The merger aligns with Tata Motors' strategy to exit non-core businesses and focus on emerging technologies and products.

• Regulatory Approvals: The scheme of arrangement is subject to SEBI, RBI, and NCLT approvals.

• Timeline: The merger process will take approximately 9-12 months to complete.