Mumbai, Mar 8 (IANS): Shareholders of Tata Motors have approved the hiving off of its passenger vehicles business into a separate entity.

The shareholders on March 5, resolution for approving the scheme of arrangement between Tata Motors Limited (transferor company') and TML Business Analytics Services Limited (transferee company) and their respective shareholders under Section 230-232 of the Companies Act, 2013.

In a regulatory filing on Monday, Tata Motors said that over 99.96 per cent of the total votes came in support of the resolution.

In August last year, the board of directors of the company had approved the proposal as per which Tata Motors would transfer its "PV Undertaking" as a going concern, on a slump sale basis to TML Business Analytics Services, the transferee company for a lump sum consideration of Rs 9,417 crore.

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.