Tata Motors share price was trading flat on Tuesday, a day ahead of the company’s demerger into separate businesses for passenger and commercial vehicles.
Tata Motors shares opened flat at ₹672.50 apiece on the BSE, and hit an intraday high of ₹674.40 apiece, and an intraday low of ₹666.90 apiece on September 30.
Last year, had approved the demerger of its Commercial Vehicles business into a separate listed entity. Last week, the National Company Law Tribunal (NCLT) had approved Tata Motors demerger plan.
Under the composite scheme of arrangement, Tata Motors’ commercial vehicle division will be demerged into TML Commercial Vehicles Limited (TMLCV), while passenger vehicle operations will remain under Tata Motors, which will be renamed Tata Motors Passenger Vehicles Limited.
Tata Motors Demerger Details
Tata Motors demerger of its passenger and commercial vehicle businesses will come into effect from October 1. The demerger record date is yet to be announced.
Tata Motors demerger share entitlement ratio at 1:1, which means shareholders will get one fully paid-up share of ₹2 in Tata Motors Commercial Vehicles Limited (TMLCV) for every share held in Tata Motors.
The scheme also provides for the transfer of non-convertible debentures worth ₹2,300 crore to the CV entity. Tata Motors’ CV business is proposed to be listed in November.
Tata Motors demerger, the company said, will unlock value and give its commercial and PV businesses a sharper strategic focus, improved agility, and clearer capital allocation.
Management reshuffle
Tata Motors on September 29 had announced that Girish Wagh and Shailesh Chandra will lead commercial vehicle and passenger vehicle entities as part of the demerger process.
The Jaguar Land Rover (JLR) maker said its board has approved the appointment of Girish Wagh to the board of TML Commercial Vehicles Ltd as an Additional Director, Managing Director and CEO, effective October 1, 2025.
Shailesh Chandra has been appointed as an Additional Director, Managing Director and CEO of the passenger vehicle entity company, effective October 1, 2025, for a period of three years till September 30, 2028.
Chandra will continue to serve as the Managing Director of Tata Passenger Electric Mobility Limited, Tata Motors said in a regulatory filing.
At 2:10 PM, Tata Motors share price was trading 0.11% higher at ₹673.25 apiece on the .
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