Tata Motors Demerger Effective October 1, Record Date Likely Mid-October

Tata Motors is set to complete its long-awaited demerger into two separate listed companies. From October 1, the commercial vehicle division will operate under TML Commercial Vehicles Limited (TMLCV). The passenger vehicle arm, which also includes electric vehicles and Jaguar Land Rover, will remain under Tata Motors. It will be renamed Tata Motors Passenger Vehicles Limited.

Demerger Scheme

Under the approved demerger scheme, Tata Motors’ commercial vehicle division will be transferred to TMLCV. The passenger vehicle business, including EV operations and the luxury Jaguar Land Rover brand, will remain with the existing company. The restructured entities will allow sharper business focus and improved capital allocation. Each business will operate as an independent listed entity under the Tata Motors umbrella.

The scheme also transfers non-convertible debentures worth ₹2,300 crore to the new commercial vehicle company. These will provide a balanced financial base for TMLCV as it begins independent operations. Listing of the new entity is expected in November 2025. The move is seen as a key milestone in the company’s broader restructuring roadmap.

Shareholder Entitlement

Shareholders will receive one fully paid-up equity share of ₹2 in TMLCV for every share held in Tata Motors. This 1:1 share entitlement ensures investors maintain equal ownership across both businesses. The arrangement is designed to give shareholders direct participation in the growth of both vehicle segments. Investors will benefit from value unlocking as the businesses pursue separate strategies.

Tata Motors has indicated in its analyst meeting that the record date for the demerger will likely be fixed for mid-October. The timeline is subject to final approval from the registrars. This step will determine shareholder eligibility for receiving shares in TMLCV. Investors are advised to follow official updates for confirmation.

Share Price Performance

Tata Motors’ share price remained in focus ahead of the restructuring announcement. On Tuesday, the stock closed 1.18% higher at ₹680.45 on the BSE. It opened at ₹672.50, touched an intraday high of ₹683.50, and fell to a low of ₹666.90 during the session. Market participants expect further clarity once the record date is finalised and the listing schedule is confirmed.

Leadership Appointments

Alongside the demerger, Tata Motors announced leadership changes to head the two entities. Girish Wagh has been appointed Managing Director and CEO of TML Commercial Vehicles Limited, effective October 1. Shailesh Chandra will continue to lead the passenger vehicle and EV business. Both executives are tasked with driving strategy, operations, and growth for their respective divisions.

Conclusion

The demerger of Tata Motors into two listed entities marks a landmark restructuring in India’s automotive sector. Investors will now hold separate stakes in the passenger and commercial vehicle businesses. The 1:1 entitlement ratio ensures equitable value distribution for shareholders. With the record date expected in mid-October, investors await the next milestone in the restructuring process.

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