Brief History:
Tata Motors originated in 1945 as Tata Engineering and Locomotive Co. Ltd. (TELCO), primarily focusing on locomotive and heavy metal engineering manufacturing. Collaborating with Benz in 1954, it expanded into commercial vehicle production. In 2003, the company was renamed as Tata Motors. It had emerged as a dominant player in the Indian automotive industry. In 2008, the company acquired the British luxury carmaker Jaguar Land Rover (JLR) and moved into global automotive league. As of 2023, Tata Motors has also established dominance in the Indian electric vehicle (EV) market, with 72% market share and the MG Motors stood second at 10.8% market share*.
Upcoming Corporate Action:
Tata Motors is one of the very few Indian listed companies to issue differential voting rights. However, the company has announced it would be converting them into ordinary shares at a ratio of 10:7. Further, the board has confirmed for a demerger, separating consumer vehicle and commercial vehicle segments. The shareholders entitled to one share of each post-demerger.
Shareholding pattern:
Common Shares:
Tata Motors' promoter holding stands at 43.69%, distributed among 8 entities. Notably, Tata Sons holds the majority share at 43.72%, while Tata Industries corporation possesses 2.17%. The remaining 6 promoter companies collectively own a just 0.5% stake. Domestic Institutions hold 17.45% of the shares, with LIC holding 5.07%, the highest individual holding. Foreign investors account for 19.1% of the stake, with Government of Singapore and Citi Bank New York is holding 1.06% and 1.37% respectively.
Differential Voting Rights (DVR) Shares:
Tata Sons owns 7.57% of DVR shares. Domestic Institutional players hold 32.41%, with ICICI Prudential commanding a significant portion at 19.35%. Foreign investors possess 18.64% of DVR shares, with Vanguard Emerging Markets Index Fund and Government Global Pension Fund owning 3.27% and 3.05% respectively.
Management:
P.B. Balaji is the current Chief Financial Officer (CFO). He studied at IIT Madras and then went on to complete his post-graduation at IIM Calcutta. Before joining Tata Motors, he worked at Hindustan Unilever for 8 years, where he served nearly 3 and a half years as CFO. He is working with Tata Motors since November 2017.
Girish Wagh, currently leads the commercial vehicles business unit and has been with the company since 1992, accumulating over 30 years of experience.
Shailesh Chandra serves as the Managing Director of the Passenger Vehicle segment. He has approximately 23 years of experience working with both Tata Motors and Tata Sons.
* - Reference "India Briefing article” -> https://www.india-briefing.com/news/indias-prospects-as-an-ev-hub-consumer-market-and-production-capacity-30157.html/
Date : 18th Apr '24; Source - Web, Annual reports
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