The wheels of transformation are in motion at Tata Motors. The iconic automaker, which houses both commercial workhorses and luxury rides under one roof, is gearing up for one of the most awaited corporate restructurings of the year and the Tata Motors has scheduled the shareholders meeting on May 6 for the same.
Tata Motors is officially splitting its business into two – one focused on commercial vehicles and the other on passenger vehicles, including Jaguar Land Rover (JLR) and electric cars.
Here is a breakdown of the Tata Motors demerger and the important updates that every shareholder should know:
Tata Motors Demerger: Shareholders meeting on May 6, 2025
Tata Motors has scheduled an important meeting with its shareholders on Tuesday, May 6, 2025 at 3:00 PM (IST). The meeting will be conducted virtually via video conferencing and other audio-visual means.
This meeting will allow shareholders to vote on the Composite Scheme of Arrangement – essentially the official plan to restructure the company into two independent entities.
Tata Motors Demerger: Who can vote? Know the cut-off date
Only those shareholders whose names appear on the company’s records as of March 28, 2025, can participate and vote in the May 6 meeting. If you purchase shares after this cut-off date, you won’t be eligible to vote on the demerger proposal.
Remote e-voting will be available from May 2 (9:00 AM) to May 5 (5:00 PM). Shareholders can also cast their vote during the meeting itself, as per the exchange filing.
Tata Motors Demerger: 1:1 Share Entitlement Ratio
If the scheme is approved, Tata Motors shareholders will receive one share of TMLCV (Commercial Vehicles) for every one share held in Tata Motors (Rs 2 face value).
That means you will have equal ownership in both the new entities – commercial and passenger – without any loss in shareholding value. The share entitlement ratio was backed by a valuation from PwC and a fairness opinion from SBI Capital Markets.
Tata Motors Demerger: When will the demerger be effective?
As per Tata Motors Q3FY25 investor presentation, the company expects the split to go live by Q3 of FY26, which falls between October and December 2025. The appointed date for the demerger, that is, the internal date from which the separation is considered to have begun, has been set as July 1, 2025. The demerger could be effective as early as October 2025.
Tata Motors Demerger: The big split – What is changing?
Tata Motors is splitting its operations into two distinct listed companies which include –
Tata Motors Commercial Vehicles Limited (TMLCV) which will house all the company’s commercial vehicle operations
The other, Tata Motors Limited (TML) which will become home to the passenger vehicle division, which includes electric vehicles, JLR, and related investments.
Tata Motors stock performance: Near 52-week low
Tata Motors shares ended the previous trading session at Rs 615.10, a sharp decline of nearly 6%. The dip came amid weak broader market sentiment and concerns triggered by the recent tariff announcement by US President Donald Trump, which rattled global markets.
In the short term, the stock has remained under pressure. Over the past five trading sessions, it has slipped 9%, while in the last one month, the decline stands at around 4%.
The damage is more severe when looking at a broader timeline. In the last six months, Tata Motors share price has plummeted 34%, and in the past one year, it has fallen 39%. On a year-to-date (YTD) basis, the stock is down 18%.
With a market capitalisation of Rs 2.26 lakh crore, Tata Motors currently trades just 1.45% above its 52-week low of Rs 606.30. Its 52-week high is Rs 1,179, indicating the steep fall the stock has witnessed in recent months.