One of India's oldest car manufacturers, Hindustan Motors Ltd (HML), has decided to transfer its Chennai Car Plant to its fully-owned subsidiary organisation Hindustan Motor Finance Corporation Ltd (HMFCL) as part of a restructuring process. HML will continue to manage the remaining business and interests of the firm.
The Chennai plant produces cars such as Mitsubishi Cedia sedan and SUV Pajero.
On Thursday, the Scheme of Arrangement for this purpose was passed by HML's board.
HMFCL will issue and allot one share for every thirteen shares held by the shareholders of parent firm HML.