SOURCE : NEW18 NEWS
Last Updated:May 05, 2025, 08:13 IST
Tata Motors Demerger News: Tata Motors will split its Commercial and Passenger vehicle businesses into two listed companies. Check ratio and other details.
Tata Motors. (File photo)
Tata Motors Demerger Date: Tata Motors Limited (TML), Indian automaker, is preparing to demerger its Commercial vehicle (CV) and Passenger vehicle (CV) businesses into two separate listed companies.
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As a part of the Scheme, TML will demerge its Commercial Vehicle undertaking involving the Commercial Vehicle business (all the assets, liabilities and employees relating to the Commercial vehicle business) and all its related investments into TMLCV.
Conversely, the existing Passenger Vehicle business in TMPV, will be merged into TML, the existing listed entity. Upon the Scheme becoming effective, both TMLCV and TML will be renamed, resulting in two separate listed entities: 1) The Commercial Vehicle business and its related investments, under the name TML, and 2) The Passenger Vehicle business, the Electric Vehicle (TPEM) business, JLR and their related investments, under the name TMPV.
Over the past few years, the Commercial Vehicles (CV), Passenger Vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses of Tata Motors have delivered a strong performance by successfully implementing distinct strategies. Since 2021, these businesses have been operating independently under their respective CEOs.
Tata Motors Shareholders Voting Meet On May 06
Now, there’s a big step in the process when shareholders will vote for the demerger proposal in the meeting on May 06. Once approved, the plan of demerger will be approved.
“…Meeting of the Equity Shareholders of Tata Motors Limited (“the Company”) is scheduled to be held on Tuesday, May 6, 2025 at 3.00 p.m (IST), through Video Conferencing (“VC”)/ Other Audio Visual Means (“OAVM”) (“Meeting”) for the purpose of considering, and if thought fit, approving the Composite Scheme of Arrangement amongst the Company, TML Commercial Vehicles Limited, Tata Motors Passenger Vehicles Limited and their respective shareholders (“the Scheme”),” the company said in the filing.
Tata Motors Demerger Ratio
Shareholders of TML will receive One share of TMLCV of face value Rs 2/- fully paid up for every ONE fully paid-up share of Rs 2/- held in TML of the same class (“Entitlement Ratio”).
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- First Published:
May 05, 2025, 08:08 IST
