Tata Group stock engaged in offering a wide and diverse portfolio of cars, sports utility vehicles, buses, trucks, defence vehicles, and many more in focus after it announced a scheme of arrangement for the merger.
Price Action
With a market capitalization of Rs. 3,60,576 Crores, the shares of Tata Motors Limited were trading at Rs. 1,084.55 per equity share, down 0.30 percent from its previous day’s close price of Rs. 1,087.85. It has delivered a return of 75 percent in a year.
What Happened
Previously the Hon’ble National Company Law Tribunal, Mumbai Bench, (“NCLT”) has passed an order sanctioning the Scheme of Arrangement of Tata Motors Limited and its shareholders and creditors, under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013, for the reduction of the share capital through cancellation and extinguishment of the listed DVR Shares also known as, ‘A’ Ordinary Share Capital and issuance of New Ordinary Shares as consideration for it.
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Following this Tata Motors Limited shall issue 7 fully paid up New Ordinary Shares of the face value of Rs. 2 each for every 10 DVRs or ‘A’ Ordinary Shares of the face value of Rs. 2 each held, as consideration to the ‘A’ Ordinary Shareholders of the Company as on the record date i.e., September 1, 2024.
In addition, The Board of Directors of Tata Motors Ltd has earlier approved a Composite Scheme of Arrangement involving the demerger of its Consumer vehicle business undertaking and the merger of Tata Motors Passenger Vehicles (TMPV) with the existing listed company thereby resulting in two separate listed companies for the Consumer Vehicle and Passenger Vehicle businesses.
About the Company
Tata Motors Limited is a leading automobile manufacturer offering a wide and diverse portfolio of cars, sports utility vehicles, buses, trucks, and defence vehicles across its global presence.
Financials and Ratios
Its Revenue from operations grew by 5.68 percent from Rs. 1,02,236 Crores in Q1FY24 to Rs. 1,08,048 Crores in Q1FY25, accompanied by profits of Rs. 3,301 Crores to Rs. 5,692 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 49.4 percent, and a return on capital employed (ROCE) of 20.1 percent. It has reported a debt-to-equity ratio of 1.26.
Written by: Bharath K.S
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