Tata Motors Strategic Demerger: A Boost for Shareholders and a New Era for Commercial and Passenger Vehicles
Stocks Soar Over 7% in Intra-day Trading as Tata Motors' Demerger Boosts Confidence, Paving the Way for Direct Competition with Maruti in Passenger Vehicles Segment. Intra-Day Surge Propelled by Demerger Approval: Tata Motors witnessed a remarkable surge of over 7%, reaching a high of Rs 1,065 in early trade on Tuesday (March 5). This surge follows the board of directors' approval of a pivotal proposal to demerge the company into two distinct listed entities. Two Specialized Entities: The demerger plan delineates one entity to oversee Tata's commercial vehicles business and related investments. Simultaneously, the other entity will encapsulate the diverse passenger vehicles businesses, encompassing traditional internal combustion engine vehicles, electric vehicles, and the renowned Jaguar-Land Rover division. Implementation through NCLT Scheme of Arrangement: The announcement of this strategic decision was made post-market hours on Monday. The demerger proposal is slated to