Hindustan Motors to demerge its Chennai Car Plant

Hindustan Motors Limited (HML) has decided to demerge and transfer its Chennai Car Plant (CCP) as a going concern to its fully owned subsidiary organisation Hindustan Motor Finance Corporation Limited (HMFCL). Mitsubishi cars are rolled out from the Chennai plant. The remaining business and interests of HML will continue to belong to and be managed by HML. The Scheme of Arrangement for this purpose was passed by the Board of Hindustan Motors Ltd. at its meeting in Kolkata. HML’s Board gave its nod to the Scheme of Arrangement providing for segregation and realignment of CCP business unit and other business units in two different entities so as to pursue their respective growth plans as appropriate. In consideration of the demerger, HMFCL will issue and allot to the shareholders of HML, 1 (one) Equity Share of Rs.5/- each in HMFCL credited as fully paid up for every 13(thirteen) Equity Shares of Rs. 5/- each fully paid-up held by them in the capital of HML.