Tata Motors Receives NCLT Approval for Scheme of Arrangement

Tata Motors Limited has received clearance from the National Firm Law Tribunal (NCLT), Mumbai Bench, for its Scheme of Arrangement, which includes the firm, its shareholders, and creditors. The scheme, which comes under Sections 230 to 232 of the Companies Act of 2013, entails reducing share capital by cancelling and extinguishing the company's 'A' Ordinary Shares, followed by the issue of new Ordinary Shares as compensation.

The NCLT's permission was confirmed in an order dated August 5, 2024, and the company issued further notice regarding the scheme's execution on August 19, 2024. Tata Motors has announced that Sunday, September 1, 2024, will be the Record Date for determining the qualifying holders of 'A' Ordinary Shares who will receive the new Ordinary Shares under the arrangement.

The company is currently in the process of filing a certified copy of the NCLT order with the Registrar of Companies, Maharashtra, Mumbai, to implement the plan. Once finalised, this filing will be a crucial step towards executing the share capital reform strategy.

The Scheme of Arrangement is part of Tata Motors' overall goal to restructure its capital structure while providing fair consideration to its shareholders. The company remains committed to carrying out the procedure in compliance with all regulatory standards.