NCLT Consents To Merger Of Tata Motors Finance With Tata Capital

NCLT Consents To Merger Of Tata Motors Finance With Tata Capital

The deal is part of the Company’s plan to exit non-core businesses and redeploy capital into emerging technologies

The Mumbai bench of the National Company Law Tribunal (NCLT) has consented to the merger plans of Tata Motors Limited’s step-down subsidiary, Tata Motors Finance Ltd (TMFL), with Tata Capital Ltd.

Tata Motors confirmed that the merger scheme, originally announced in June 2024, became effective on 8 May 2025, after a certified copy of the NCLT order was filed with the Registrar of Companies.

As a result, TMFL ceases to be a subsidiary of Tata Motors.

The transaction is part of Tata Motors’ plan to exit non-core businesses and redeploy capital into emerging technologies and core product development.

The merger enables Tata Capital, a diversified NBFC with assets under management (AUM) of Rs.1.6 lakh crore, to gain a strong foothold in the commercial and passenger vehicle financing space. TMFL has built a significant presence with an AUM of Rs.32,500 crore.

Tata Motors stated that the deal involved a share exchange, with shareholders of TMFL receiving 37 equity shares of Rs.10 each in Tata Capital for every 100 equity shares of Rs.100 each held in TMFL.

Post-merger, Tata Motors holds a 4.7 percent stake in Tata Capital.

The advisers to the transaction included E&Y, ICICI Securities, and Wadia Ghandy & Co for Tata Capital, and PwC, Axis Capital, and AZB & Partners for TMFL.