Tata Motors Shareholders to Vote Tomorrow, May 6 on Demerger to Spin off PV, EV, JLR Into New Listed Entity

On Tuesday, May 6, 2025, shareholders will gather virtually to vote on the proposed demerger of its businesses into two distinct listed entities one for Commercial Vehicles (CV) and related investments, and the other for Passenger Vehicles (PV), including Electric Vehicles (EV) and Jaguar Land Rover (JLR).

Tata Motors Demerger Plan Background

The journey toward this structural shift began in March 2024, when Tata Motors announced its intention to separate its core businesses to enhance operational focus and unlock value. The company’s board had approved the plan to split into two publicly listed companies:

• TMLCV: Housing the Commercial Vehicles segment and associated investments.

• TMLPV: Encompassing the Passenger Vehicles business, EV segment, and JLR.

The demerger will be implemented through a mirror shareholding structure, meaning existing Tata Motors shareholders will receive one share of TMLCV for every one share held in Tata Motors Limited (TML), preserving identical ownership across the two new entities.

Shareholders’ Meeting Details

The shareholder vote on the demerger scheme is scheduled for Tuesday, May 6, 2025, at 3:00 PM IST. The meeting will be held via video conferencing or other audio-visual means, allowing eligible shareholders to attend and cast their votes remotely.

Eligibility to vote is based on shareholding as of March 28, 2025, which was declared as the cut-off date. Additionally, the window for remote e-voting opened on Friday, May 2, and will remain active until Monday, May 5, 2025, at 5:00 PM.

Stock Split and Share Entitlement

As part of the demerger process, Tata Motors confirmed a 1:1 share entitlement ratio. Shareholders will receive one share of TMLCV (face value ₹2) for each share of TML (₹2 face value) they currently hold. This structure ensures that shareholders maintain proportionate ownership in both newly formed companies post-demerger.

Share Price Performance

Tata Motors Limited shares are trading at ₹657.75, reflecting a gain of ₹5.75 or 0.88% from the previous close. The stock opened at ₹662.95 and reached a high of ₹666.65 during the session.

Read More: BluSmart Shutdown Shocks Tata Motors, Citroën, Impacting India’s EV Plans.

Conclusion

With the shareholder vote on Tata Motors’ demerger set for tomorrow, May 6, market participants are keeping a close eye on the stock and the outcome of this landmark decision.

The proposed move marks a strategic evolution in Tata Motors’ journey, aimed at providing sharper business focus and enhancing long-term shareholder value through independent listings of its key segments.

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