Tata Motors Ltd., a leading manufacturer of passenger and commercial vehicles, announced at its analyst meet that the record date for the demerger of its Commercial Vehicles (CV) business is expected to be set in mid-October, with the listing of the newly formed entity planned for November. The demerger will create two separate listed entities under Tata Motors:
-
TML Commercial Vehicles (TMLCV): encompassing the commercial vehicle segment.
-
Tata Motors Passenger Vehicles: covering the passenger vehicle operations.
Both businesses are expected to be listed by November, and following the demerger, shareholders will receive an equivalent number of shares in each entity.
During Monday’s analyst meet, Tata Motors confirmed that the demerger process is proceeding as scheduled and has received approval from the National Company Law Tribunal (NCLT). The demerger will officially take effect from Wednesday, October 1, with the record date expected in mid-October, subject to approval from the Registrar of Companies (RoC).
The company’s dedicated commercial vehicle (CV) entity will be led by Girish Wagh, currently heading Tata Motors’ CV operations. Shailesh Chandra, who presently leads the PV and EV divisions, will head the newly focused passenger vehicle company. According to Tata Motors, the demerger is designed to unlock value and improve corporate efficiency, while recognizing the distinct market dynamics, growth opportunities, and capital needs of its CV and PV businesses.
