Tata Motors on Monday said that its shareholders have approved the hiving off the passenger vehicle (PV) business into a separate entity.

On March 5, the shareholders of the auto major had voted on a proposal to transfer the passenger vehicles unit to TML Business Analytics Services Ltd as a going concern.

TML Business Analytics will pay a lump sum for the transfer which will take place on a slump sale basis.

In a regulatory filing, Tata Motors said around 215.4 crore votes were polled of which around 215.3 crore were in favour of the resolution. This translates into 99.96 per cent of the votes, while 8.9 lakh votes (0.042 per cent) were against the proposal. In terms of public institutional shareholders, around 68.9 crore votes were polled with all of them in favour and none against the resolution.

In the public non-institutional shareholder category, around 15.2 crore votes were polled with 15.1 crore (99.4 per cent) in favour and 8.9 lakh votes (0.6 per cent) against the move.

The management expects the process of hiving off its domestic PV business to be completed around May-June this year, although it has not yet taken a call on a potential partner.

Last year, Tata Motors had announced that it would turn its domestic PV business unit into a separate entity and seek a strategic partner to help the unit secure its long-term viability.

In its letter to shareholders, Tata Motors had said that as part of an overall business reorganisation plan and in order to provide for the optimum running, growth and development of the PV undertaking and interests of the company, it is necessary to realign the business.

According to Tata Motors, the spinoff will help in providing differentiated focus for the PV and commercial vehicle business and help each of them realise their potential apart from unlocking the business value and enhanced management focus and operational flexibility in each of these segments.

It also pointed out that the passenger vehicle business (which also includes the passenger electric vehicle business) landscape is seeing rapid transformation in the form of tightening emission norms and safety norms, push towards electrification and enhanced disruptions from autonomous and connected technologies.