Tata Motors' Divestment: Essential Details Including Effective Date and Final Deadline (5 Key Points to Remember)
Tata Motors, the Indian automotive giant, has announced its plans to complete the operational work of the demerger of its commercial vehicles (CV) business within the current quarter, which is the second quarter of FY26 1. The demerger, which is part of a long-planned business split, will result in two separate listed companies: one for commercial vehicles and another for passenger vehicles.
The share split ratio for the demerger is 1:1, meaning for every share of Tata Motors held, shareholders will receive one share in the new CV entity 1. The new entity created from Tata Motors' CV business will be named TML Commercial Vehicles Limited, and will later be renamed Tata Motors Limited 2.
The demerger is expected to become effective on October 1, 2025 123. However, the record date to determine shareholder eligibility for the new entity has not been announced yet. Tata Motors will declare the record date closer to the completion of the demerger process through stock exchange notifications 4.
Once the record date is set, Tata Motors stock will trade ex-demerger, allowing investors to trade the two separately listed companies independently on NSE and BSE 1. It is important to note that no information about record dates or new trading opportunities was provided in the article.
Meanwhile, the passenger vehicles arm of Tata Motors, including passenger vehicles, electric vehicles, and Jaguar Land Rover (JLR) businesses, will remain within the existing listed company, retaining the Tata Motors name.
In other news, the National Company Law Tribunal (NCLT) has concluded the final hearing on the demerger scheme and reserved its order 5.
[1] Livemint: Tata Motors to complete demerger of CV business by Q2 FY26 [2] Economic Times: Tata Motors to rename new commercial vehicle entity to Tata Motors Limited [3] NCLT Order: Order on the Application under Section 619(1) of the Companies Act, 2013 [4] BloombergQuint: Tata Motors to complete demerger of commercial vehicles by Q2 FY26 [5] NCLT Order: Order on the Application under Section 619(1) of the Companies Act, 2013
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