Shareholders of Tata Motors on Monday have approved the hiving off of its passenger vehicles business into a separate entity.

On March 5, the shareholders of the company voted to consider and approve the transfer of the passenger vehicles business unit to TML Business Analytics Services Ltd as a going concern on a slump sale basis for a lump sum consideration, under Section 230-232 of the Companies Act, 2013.

The company had said that its passenger vehicles business has been valued at Rs 9,417 crore.

In a regulatory filing, Tata Motors said total 2,15,41,38,392 votes were polled out of which 2,15,32,39,294 were in favour of the resolution, translating into 99.958 per cent of the total votes, while 8,99,098 votes (0.042 per cent) were against.

On the completion of the deal, TML Business Analytics Services Limited will be changed to ‘Tata Motors Passenger Vehicles Limited’.

Through this reorganisation of business, Tata Motors board believes will help providing a differentiated focus for the said passenger vehicle business and commercial vehicle business and help each of them realise their potential, and unlocking business value and enhanced management focus and operational flexibility in each of the businesses.

Further, this restructuring would facilitate mutually beneficial strategic alliances for the PV undertaking in the future.

Last month, Tata Motors’ overall sales in the domestic and international market for February 2021 stood at 61,365 units from an off-take of 40,619 units sold during February 2020.

Additionally, the passenger vehicle segment recorded a nearly 9-year high in terms of sales last month.