Tata Motors Demerger Effective Oct. 1 — Check Ratio, Other Details
Tata Motors Demerger: Upon the scheme becoming effective, both TML Commercial Vehicles and Tata Motors will be renamed, resulting in two separate listed entities.
Tata Motors Ltd.'s demerger of its commercial vehicle business will be effective Oct. 1, 2025. The National Company Law Tribunal has reserved the order for the scheme of demerger, the company said last week.
The board approved the company's demerger into two separate listed entities in 2024. As a part of the scheme, Tata Motors will demerge its CV business and all its related investments in TML Commercial Vehicles Ltd.
The existing passenger vehicle business will be merged into Tata Motors. The PV business includes the EV arm, JLR and their related investments, under the name Tata Motors Passenger Vehicles Ltd.
Upon the scheme becoming effective, both TML Commercial Vehicles and Tata Motors will be renamed, resulting in two separate listed entities. Tata Motors’ CV segment’s revenue slipped nearly 5% year-on-year to Rs 17,000 crore in the first quarter.
Record Date
Tata Motors had announced that the demerger ratio for its commercial vehicle and passenger vehicle business will be 1:1. This means one share of the demerged company will be issued for every one share held in Tata Motors. The demerged company will list separately on the NSE and BSE.
The company will announce the record date for the demerger in advance via a stock exchange filing and public advertisement. The record date determines the eligibility of shareholders for the corporate action. The stock will then go ex-trade to reflect the adjusted price.
