New Delhi, Mar 5 (PTI) Shares of Tata Motors on Tuesday ended more than 3.50 per cent higher after the firm announced the demerger of its commercial and passenger vehicle segments into two separate listed entities to better capitalise on growth opportunities.
The stock climbed 3.52 per cent to settle at Rs 1,021.95 apiece on the BSE. During the day, it jumped 7.94 per cent to reach the 52-week high level of Rs 1,065.60.
On the NSE, shares of the company went up by 3.58 per cent to Rs 1,022.60 each. During the day, it zoomed 7.94 per cent to the 52-week high of Rs 1,065.60.
The company’s market capitalisation (mcap) jumped by Rs 11,588.24 crore to Rs 3,39,619.70 crore.
It was the biggest gainer among the Sensex and Nifty firms.
The commercial vehicles business and its related investments would be housed in one entity while the passenger vehicle business, including electric vehicles, Jaguar Land Rover (JLR) and its related investments, would be part of the second entity, the auto major said in a regulatory filing on Monday.
Tata Motors Chairman N Chandrasekaran said that Tata Motors has scripted a strong turnaround in the last few years.
“The three automotive business units are now operating independently and delivering consistent performance. This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility,” he added.
The demerger would lead to a superior experience for customers, better growth prospects for employees and enhanced value for shareholders, Chandrasekaran stated.
According to the proposal approved by the company board in a meeting on Monday, 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 the listed entities. PTI SUM SHW
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