According to an investor presentation, Tata Motors has projected that the said demerger will be complete by the third quarter of the financial year 2026
Tata Group’s automaker Tata Motors has announced splitting its passenger and commercial vehicle business into two listed companies. The company announced the separation on Tuesday following the shareholders' approval for the same with 99.9995% of votes. The proposed arrangement would give Tata Motors shareholders equal stakes in both listed entities, said the company in a statement.
“The Scrutinizer’s Report was received after the conclusion of the Meeting on May 6, 2025 and as set out therein, the aforesaid Resolution was declared carried with requisite majority,” said the company in an exchange filing on the National Stock Exchange (NSE).
The meeting was held through video conferencing and e-voting was carried out, following an order from the Mumbai Bench of the National Company Law Tribunal (NCLT) on March 25.
The restructuring will lead to the demerger of the company’s commercial vehicles (CV) business into a new venture, TML Commercial Vehicles Limited and the merger of Tata Motors Passenger Vehicles Limited (TMPV) into the parent company, Tata Motors Ltd. The passenger vehicle division includes electric vehicles and Jaguar Land Rover (JLR).
The demerger of the two businesses was announced by the company earlier and Tata Motors had specified that the share entitlement ratio would be 1:1, wherein shareholders will continue to hold equal ownership stakes in both the listed entities.
“Each shareholder of TML will receive one equity share of face value Rs 2 in TMLCV for every one equity share of Rs 2 held in Tata Motors ltd,” the company said in an exchange filing.
According to an investor presentation, Tata Motors has projected that the said demerger will be complete by the third quarter of the financial year 2026.