New Delhi, July 31 -- Tata Motors Ltd assuaged investor concerns over its acquisition of Italian truck and bus maker Iveco for $4.4 billion, reasoning that it would help generate more returns for shareholders when it starts trading as a standalone entity later this year.

Less than 12 hours after Tata Motors announced its largest acquisition ever, its management fielded questions from analysts and investors over the rationale for the acquisition.

"It is a meaningful, large acquisition. There is an understanding between the two companies to build a business of scale and size," chief financial officer P.B. Balaji said during the call.

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