the valuation scho

TATA MOTORS

4 DEMERGER -
(
-
&

E
-

&

simplest explanation -

Ever
motors announced Demerger
7 -m

Recently
- -

understand
Let's
everything
from scratch-
 ?
is Demerger
Mat

Listed
--
One
--
company
°
-
Separate its businesses
-

-
Now two
--
companies are

listed ↳
 ?
is Demerger
Mat

Before
>
- one
company
After
-

-
tho panies
.
 Why
- emerger ?
Generic Reasons
↳ focus on main Business
unit
↳ los
separate making

*
Real Reason

↳ AVE
UNLOCKING

↳
 demerg ?
How en creates value

value
value of > of
TWO Businesses
one
- -
Business
- -

-
>
Let's understand
Adani Demerger
value unlock
--

↳
↳ In 2015, Adani enterprises
announced a
egaerger
of its Businesses

↳
Beforemerger
10 ,
S hares
000 -
Adani Enterprises

AftDemerger
10,000 x Adani Enterprises
14123 X Adani Port

mone
& e
18596 X Adani Power created
10000 x Adani
Transmission
② ②

massive
②
-
value
unlock !
↳
Adais
_
again
Demergerspre -

have
started
They AEL
as

projecting
- 'Incubator'
Nurture
its
who
other
-
Business
But what about

moFors
-
Samajh
jao
↳
 what
--
happened ?

Tata motors to
Demerge

Tata motors

--
↑ Passanger Vehicle

↑motors -
TATA

Tata motors

ommercial Vehicle
 management
What ?
say

Increase focus
-

customised
strategy
-

value unlock
--

↳ Let's Deep dive

↳
makes sense to
I separate

PBusinesses
c .

Dynamics are different.

cV
-
market is matured

relatively
↳
 CV Registration
>
- declining
b
>
-
It will

Kurt TAMO

Overall
growth
if .
not demerged
 4 00

PV contribute 78 % in Revenue

↳ Need a
focussed
entity to tap
Ev
opportunity
.
 Market valuation

· TAmo is cheaper than PV peers

 Market valuation

·
TAMO is cheaper than CV peers
 it will
How afte
shareholders
?

A share -Pu
one share
>
-
in TAMO >
- ↓ Share CV

↳
What's ahead
----
for
TAMO
?

Demerger creates value

Subject to ,

Execution
-

-
Economic condition
 have learnt
Iey something
REPOST to
help others
-

SAVE -
Future Reference
-

i
>
- -
- -

&

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