 "An employee writes on a register inside the Tata Motors car showroom in Ahmedabad")
Tata Motors Finance, the vehicle financing company owned by Tata Motors, will transfer its new vehicle finance business to Sheba Properties, to its fully owned subsidiary.
The transfer to Sheba Properties is done for an undisclosed lump sum consideration (arrived at based on an independent valuation exercise), said a statement released by Tata Motors to the Bombay Stock Exchange.
In March Tata Motors had divested its entire stake in Sheba Properties to Tata Motors Finance for Rs 405.37 crore.
"The key rationale for this scheme is to transfer new vehicle finance business to Sheba with a view to convert the company (Tata Motors Finance) into a systematically important core investment company and to consolidate the different vehicle financing and other allied operations in a more focussed manner under the company and its subsidiaries", Tata Motors said today.
Tata Motors Finance is a systematic non-deposit taking non-banking financial company and is classified as an asset finance company.
Sheba Properties is also a non-deposit taking, non-banking financial company.
The scheme of arrangement will come into effect after obtaining all applicable approvals including the sanction of the Bombay High Court.
