Tata Motors on Monday said the board of directors has approved the proposal of demerger of Tata Motors Ltd into two separate listed companies. One entity will encompass the commercial vehicles business and its related investments, while the other will include passenger vehicles businesses, comprising PV, EV, JLR and its related investments.
The demerger will have no adverse impact on employees, customers, and business partners. The demerger will be implemented through an NCLT scheme of arrangement and all shareholders of TML shall continue to have the identical shareholding in both the listed entities.
Over the past few years, the commercial vehicles (CV), passenger vehicles (PV+EV), and Jaguar Land Rover (JLR) businesses of Tata Motors have delivered a strong performance by successfully implementing distinct strategies. Since 2021, these businesses have been operating independently under their respective CEOs.
“This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility,” Chairman N Chandrasekaran said.
The demerger will be subject to all necessary shareholder, creditor and regulatory approvals which could take a further 12-15 months to complete.
No impact on shareholders
– All Tata Motors shareholders shall continue to have identical shareholding in both entities, which will focus on passenger & commerical vechicles separately
– N Chandrasekaran, chairman, Tata Motors, said the demerger would help them better capitalise on the opportunities provided by the market
