Tata Motors share price rises 4% on progress in CV business demerger, India-UK free trade agreement

Stock Market Today: Tata Motors share price gained more than 4% in the morning trade on Wednesday, propelled by two developments: First, the progress in the demerger of its CV business, and second being the India-UK free trade agreement.

Tata Motors share price

Tata Motors share price opened at ₹640 levels on the BSE. The opening levels of Tata Motors share price on Wednesday were lower than the previous day's closing price of ₹647.80. 

Tata Motors share price, however, gained sharply to hit an intraday high of ₹675.45, which translated into gains of more than 4%.

On the NSE, Tata Motors share price jumped to ₹675.65, translating into gains of more than 4%. Tata Motors stock was among the top gainers in the Nifty 50 pack.

Tata Motors: CV business demerger progress

Tata Motors plans to demerge the commercial vehicles business, and in this regard, the automaker had told exchanges that the Special Resolution set out in the notice convening the meeting was put up to the equity shareholders for voting on May 6.

The agenda pertained to the approval of the Composite Scheme of Arrangement amongst Tata Motors Limited ("the Company"), TML Commercial Vehicles Limited, Tata Motors Passenger Vehicles Limited and their respective shareholders, the company said.

As per Tata Motors' release, the officials informed the shareholders that the voting results, along with the scrutiniser's report, would be disseminated through the stock exchanges and placed on the websites of the company within two working days from the conclusion of the meeting.

News reports, however, suggest that shareholders have approved the demerger, though a company release on the exchanges and website is awaited.

India-UK FTA to benefit Tata Motors

A historic multilateral agreement has been finalised between India and the United Kingdom on Tuesday, May 6. The trade deal ensures that 99% of Indian exports will be tax-free, while the Indian import duties will also be reduced substantially. Tata Motors will benefit as tax is set to be reduced, which will lower the import price of Jaguar Land Rover products.

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