Tata Motors is entering the final lap of its long planned business split. As per the latest development in its demerger plan, the company has now announced the effective date and timeline for completing the demerger of its commercial vehicle (CV) and passenger vehicle (PV) businesses.
Let’s take a look at the key details every investor need to know
Tata Motors demerger: Effective date
In its latest regulatory filing, Tata Motors said that the demerger will officially take effect from October 1 this year.
This development comes after the National Company Law Tribunal (NCLT) concluded the final hearing on the scheme and reserved its order.
Tata Motors demerger: Completion expected this quarter
While the legal process is nearing its end, Tata Motors is looking to wrap up the operational work. The company has stated that the entire process should be completed within the current quarter, that is, the second quarter of FY26.
Tata Motors demerger: Two separate listed companies
Under the approved plan, Tata Motors’ CV business, along with related investments, will move into a new entity called TML Commercial Vehicles Limited.
This will later be renamed Tata Motors Limited.
Meanwhile, the PV arm which houses the passenger vehicle, electric vehicle, and Jaguar Land Rover (JLR) businesses will remain within the existing listed company, also retaining the Tata Motors name.
Tata Motors demerger: 1:1 share split
Now, coming to the share split ratio, for every share of Tata Motors held, the shareholders will receive one share in the new CV entity.
Both companies will be separately listed on the NSE and BSE. This allows investors to hold or trade the two businesses independently.
Tata Motors demerger: Record date to be announced later
The record date which will determine which shareholders are eligible to receive shares of the new entity will be announced closer to the completion date through stock exchange notifications. Once the record date is set, Tata Motors stock will trade ex-demerger.