One of India’s largest multinational automotive manufacturing companies, Tata Motors Ltd, has received its shareholders' approval to hive off its passenger vehicle business into a separate entity.

The company's shareholders voted on March 5 to consider and approve transfer of its passenger vehicles business unit to TML Business Analytics Services Ltd as a going concern on a slump sale basis for a lump sum consideration. Of the total 215.41 crore votes polled, 215.32 crore, or 99.958 per cent, were in favour of the resolution, Tata Motors said in a stock exchange filing.

Last year, the company's board had approved a plan to subsidiarise its passenger vehicles, including electric vehicles, business into a separate entity through a scheme of arrangement. The company had also said that it would seek a strategic partnership to help the unit secure its long-term viability.

The plan, Tata Motors had said, would provide differentiated focus for passenger vehicles and commercial vehicle businesses and help each of them realize their potential.

In January this year, the company's management had said that the process of hiving-off passenger vehicles unit is likely to be completed around May-June this year, although it has not yet taken a call on a potential partner for the business.

Shares of Tata Motors Ltd on Monday closed in NSE at Rs.326.45 as compared to the previous close of Rs. 339.20

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