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Hindustan Motors to hive off Chennai car plant into subsidiary

11 Jan 2013 Evaluate

Hindustan Motors (HML) has decided to hive off its state-of-the-art Chennai car plant, which manufactures Mitsubishi vehicles like Lancer and Pajero, into Hindustan Motor Finance Corp (HMFC), an existing subsidiary of the company. Meanwhile, remaining business and interests will continue to belong to and be managed by Hindustan Motors.  Further, this decision is being seen as a move by the CK Birla group to rope in a strategic partner for its more prospective operations.

Meanwhile, this scheme of arrangement was passed by the board of directors at meeting held on January 10, 2013. HML’s board approved the scheme of arrangement providing for segregation and realignment of Chennai car plant and other business units in two different entities so as to pursue their respective growth plans as appropriate.

Furthermore, the subsidiary, HMFC will issue and allot to the HML’s shareholders, one fully paid-up equity share of Rs 5 each for every 13 shares of Rs 5 each held by them in the company.

Hindustan Motors is India’s pioneering automobile manufacturing company manufactures passenger cars, Multi Utility Vehicles and RTV. It also manufactures passenger cars in the mid size premium segment (Mitsubishi Lancer, Lancer Select, and Lancer Cedia) and has brought the Sports Utility Vehicle (Mitsubishi Pajero) into the Indian market, in collaboration with Mitsubishi Motors of Japan.

Hindustan Motors Share Price

16.83 -0.29 (-1.69%)
20-Apr-2026 16:59 View Price Chart
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