Tata Motors shareholders raise concerns for investor wealth crash

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Shareholders of Tata Motors came down heavily on the management of the company at its annual general meeting for denying them dividends and questioned the deterioration in investor’s wealth. Tata Motors last paid a dividend of 20 paise in 2016.

Tata Motors chairman N. Chandrashekharan admitted that the management hasn’t been able to pay the dividends for the last four years. He also added that there was no room for giving this on a standalone basis. He, however, maintained that dividend payout and value creation are top priorities for the company.

He said that the management is working towards improving the financials of the company. Unlocking non-core assets and bringing the Rs.61,900 crore automotive debt to “near-zero levels in three years” are among its plans. The company is also expected to generate free cash flows from 2022 onwards. Chandrashekharan admitted that the overall investments of Tata Motors had fallen by 50% in fiscal 2020 but the company is managing it tightly.

Dismissing some British media reports that UK government had rejected the company’s request for a rescue package for JLR, Chandrashekharan said that the company was not in any discussions with the UK government for any funding for JLR.

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