MARKETS

BSE Prices delayed by 5 minutes... Prices as on Oct 15, 2018   ABB India 1290.9 [ -1.31% ]ACC 1522.5 [ 1.38% ]Ambuja Cements Ltd. 216.7 [ -2.10% ]Asian Paints Ltd. 1246.55 [ -1.19% ]Axis Bank Ltd. 575.85 [ -1.51% ]Bajaj Auto Ltd. 2625.2 [ -0.13% ]Bank of Baroda 97.2 [ 1.04% ]Bharti Airtel 291.4 [ 0.29% ]Bharat Heavy Ele 75.8 [ 1.20% ]Bharat Petroleum 296.3 [ 2.65% ]Britannia Ind. 5660.75 [ -1.42% ]Cairn India Ltd. 285.4 [ 0.90% ]Cipla 646 [ 3.78% ]Coal India 275.7 [ -1.09% ]Colgate Palm. 1096.75 [ -0.26% ]Dabur India 397.3 [ -2.50% ]DLF Ltd. 156.85 [ -0.57% ]Dr. Reddy's Labs 2561.15 [ 4.52% ]GAIL (India) Ltd. 350.45 [ -2.29% ]Grasim Inds. 898.6 [ 0.19% ]HCL Technologies 1002.65 [ 1.83% ]HDFC 1733.95 [ 0.21% ]HDFC Bank 2007.85 [ 1.46% ]Hero MotoCorp 2883.3 [ -0.33% ]Hindustan Unilever L 1526.6 [ -2.68% ]Hindalco Indus. 231.5 [ 2.12% ]ICICI Bank 313.2 [ -1.76% ]IDFC L 38.8 [ 0.52% ]Indian Hotels Co 126.85 [ 1.36% ]IndusInd Bank 1626.85 [ -1.48% ]Infosys 699.1 [ 2.95% ]ITC Ltd. 281.6 [ 2.51% ]Jindal St & Pwr 177.75 [ -0.34% ]Kotak Mahindra Bank 1170.55 [ 0.10% ]L&T 1216.95 [ -1.46% ]Lupin Ltd. 880.45 [ 4.15% ]Mahi. & Mahi 748.6 [ -2.63% ]Maruti Suzuki India 7181.95 [ -1.39% ]MTNL 13.98 [ 1.53% ]Nestle India 9666.4 [ -0.35% ]NIIT Ltd. 73.1 [ 6.02% ]NMDC Ltd. 112.85 [ 1.44% ]NTPC 164.55 [ 0.30% ]ONGC 160 [ 1.78% ]Punj. NationlBak 67.15 [ 1.21% ]Power Grid Corpo 188.25 [ -0.21% ]Reliance Inds. 1139.8 [ 1.19% ]SBI 263.35 [ 0.00% ]Vedanta 210.95 [ -1.52% ]Shipping Corpn. 43.55 [ 0.35% ]Sun Pharma. 599.5 [ 1.50% ]Tata Chemicals 650.85 [ -0.72% ]Tata Global Beverage 234.05 [ 2.34% ]Tata Motors Ltd. 184.3 [ 0.49% ]Tata Steel 571 [ -0.69% ]Tata Power Co. 71.3 [ 3.56% ]Tata Consultancy 1949.15 [ 1.60% ]Tech Mahindra Ltd. 693.9 [ 0.05% ]UltraTech Cement 3711.1 [ -2.24% ]United Spirits 533.1 [ 2.15% ]Wipro Ltd 320.4 [ 1.39% ]Zee Entertainment En 472.05 [ 1.24% ]

News Details

You can view in detail.
Tata Motors open to stake sale in finance arm, expects Rs 50k cr AUM by 2020 11/06/2018 11:37

Tata Motors is open to divesting stake in its financing arm, Tata Motors Finance, which is expected to have Rs 50,000 crore of assets under management by 2020, according to company officials.

The auto major, however, intends to keep control in Tata Motors Finance Ltd (TMFL), an entity which it expects to play a key role in its future growth even as it sells a stake in other businesses or winds up some operations abroad as part of a restructuring exercise.

"Of course, we are very clear that we will now continue to invest as far as Tata Motors Finance is concerned. We will maintain control as far as Tata Motors Finance is concerned. But clearly, there is no intention to say that it should always hold at 100 per cent. That is also clear," Tata Motors Group CFO PB Balaji told analysts.

He said the company expects "a very strong broad-based rebound" in TMFL, which saw 24 per cent increase in assets under management (AUM) in 2017-18 at Rs 27,932 crore as against Rs 22,517 crore in 2016-17.

"Probably the most heartening to see is gross NPA has gone from 18 per cent last year (FY17) down to 4 per cent (in FY18) and the business actually generates an ROE (return on equity) of 17 per cent," Balaji added.

Elaborating on strategic goals, Tata Motors Finance Ltd(TMFL) CEO Samrat Gupta said in an investor presentation that the company is aiming to be a "Rs 50,000 crore asset under management group" by 2020.

As part of the plan, TMFL also plans to expand its reach by increasing total branches across India to 500 by 2020 from 270 at present, he added.

Moreover, Gupta said TMFL is also targeting to "attain 20 per cent sustainable ROE" by 2020.

Apart from driving up financing of its new vehicles by TMFL, Tata Motors also looking at the financing arm to help its partner suppliers with poor financial health.

Conducting the financial risk assessment of stressed vendors, providing assistance in correcting capital structure and financial working capital requirements are some of the areas that Tata Motors is looking to leverage on TMFL.

The significance of TMFL to Tata Motors is in contrast to other businesses such as defence the sale of which is in progress.

Balaji said Tata Motors is "now holding for sale of a stake in Tata Technologies as well as Tata Hitachi" and some small shareholding in other companies like Tata Steel.

"We are winding up our Spain business (Tata Hispano), which is already in final stages as well as Tata Precision in Singapore has been wound up," he added.

LOAD MORE