PB Balaji, the group chief financial officer at Tata Motors, has emerged as a key figure in the planned demerger of the automobile major into two separate listed firms, Mint reported on November 4.
Balaji could be appointed as a unifying executive of both the entities to ensure effective capital allocation, the report said, citing sources.
The spin-off will see two separate entities for commercial and passenger vehicles, and the process is likely to be wrapped up in the next 12-15 months, the paper said.
Balaji could serve as the chairman or vice-chairman of both firms and also handle the PV business as its executive head, according to the report, adding that he has the backing of Tata Sons chief N Chandrasekaran. No decision has been taken yet and the final call lies with the board members of Tata Sons and Tata Motors, Mint said.
In August, the board of Tata Motors approved the demerger of commercial vehicle business into TML Commercial Vehicles Limited, and announced that the passenger vehicles businesses including PV, EV, JLR and related investments in another entity, the company informed stock exchanges in a filing.
The demerger will be implemented through an NCLT scheme of arrangement and all shareholders of Tata Motors shall continue to have identical shareholding in both the listed entities, the carmaker had said in March when the scheme was first announced.
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