NCLT Directs Tata Capital And Tata Motors Finance To Call Shareholders Meetings For Merger Approval

The National Company Law Tribunal (NCLT) has directed Tata Capital and Tata Motors Finance to seek approval from shareholders and creditors for their proposed merger.

The directive was issued on December 3 by the Mumbai bench of the NCLT. Tata Capital, with an asset under management (AUM) of Rs 1.6 lakh crore, provides a wide range of financial services, while Tata Motors Finance primarily funds vehicle purchases for Tata Motors customers. The merger aims to create a larger financial entity with expanded geographical reach and a stronger asset base. Tata Capital will issue shares to Tata Motors Finance’s shareholders, with Tata Motors holding a 4.7% stake in the new entity. The merger is expected to take 9-12 months to complete.