New Delhi – Tata Motors Limited has confirmed that its long-planned demerger, separating its commercial vehicle (CV) and passenger vehicle (PV) businesses into independent listed entities, will become effective on October 1.
The restructuring, approved by the company’s board, regulators, and the National Company Law Tribunal (NCLT), will see shareholders receiving one share in the new commercial vehicle entity for every Tata Motors share held on the record date, the company said in a regulatory filing.
The record date will be announced following statutory filings. Afterward, shareholders will hold shares in both companies — with their holdings automatically credited to demat accounts and voting rights proportionately distributed. Each company will establish its own dividend policies.
Following the demerger:
- TML Commercial Vehicles Ltd. (TMLCV) will become the standalone commercial vehicle entity and be renamed Tata Motors Limited.
- The current listed company will be renamed Tata Motors Passenger Vehicles Ltd., retaining its passenger vehicle, electric vehicle (EV), and luxury car (Jaguar Land Rover) businesses.
Leadership roles have also been confirmed. Girish Wagh, head of Tata’s CV operations, will lead the commercial vehicle company, while Shailesh Chandra, who currently oversees the passenger vehicle and EV divisions, will head the PV-focused entity.
Tata Motors said the demerger is intended to “unlock shareholder value and improve operational efficiency,” reflecting the differing market environments, growth opportunities, and capital requirements of the two businesses.
The company first announced the move in 2024. The appointed date for accounting and valuation purposes is July 1, 2025, while October 1 marks the legal effective date for the demerger.
With inputs from IANS