The proposed merger of Tata Motors Finance Limited with Tata Capital Limited was approved by the Competition Commission of India (CCI).
Tata Capital Limited (TCL) is a subsidiary of Tata Sons and operates as a non-banking financial investment and debt company (NBFC-ICC).
TCL is primarily engaged in the business of lending, leasing, factoring, financing, and distribution of financial products.
Operating as an NBFC-ICC, Tata Motors Finance Ltd. (TMFL) is in the business of providing loans and facilities to finance the purchase of new cars manufactured by Tata Motors and its associated companies.
TMFL also refinances existing vehicle finance loans. It is a wholly owned subsidiary of Tata Motors Limited.
In June 2024, the boards of Tata Motors, TCL, and TMFL approved the merger of TMFL with TCL through the NCLT scheme of arrangement.
As consideration for the merger, TCL will issue its equity shares to the shareholders of TMFL, resulting in TML’s effective shareholding in the merged entity being 4.7%.
TCL and TMFL reported profit after tax of Rs 3,150 crore and Rs 52 crore, respectively, in FY24.
