Tata Motors Ltd, India’s leading automobile manufacturer, has officially implemented its Composite Scheme of Arrangement involving TML Commercial Vehicles Ltd (TMLCV) and Tata Motors Passenger Vehicles Ltd (TMPV), effective October 1, 2025. The announcement follows approvals from the National Company Law Tribunal (NCLT), Mumbai Bench, through orders dated August 25 and September 10, 2025.
Record Date and Share Entitlement
The company has set October 14, 2025, as the record date to determine the eligible shareholders entitled to receive shares in the newly formed TML Commercial Vehicles Ltd.
Under the approved scheme, shareholders of Tata Motors will receive one share of TMLCV (face value ₹2 each) for every one share held in Tata Motors Ltd of the same face value.
Structure of the Demerger
The restructuring separates Tata Motors’ businesses into two focused entities:
- TML Commercial Vehicles Ltd (to be renamed Tata Motors Ltd): Will operate the commercial vehicles business.
- Tata Motors Ltd (to be renamed Tata Motors Passenger Vehicles Ltd): Will continue as the listed entity, focusing on passenger vehicles, electric vehicles (EVs), and the Jaguar Land Rover (JLR) businesses.
The appointed date for the scheme is July 1, 2025.
Listing and Share Price Adjustment
On the record date, the share price of Tata Motors will be adjusted on the stock exchanges to reflect the demerger of the commercial vehicles business through the usual price discovery mechanism.
Once the list of eligible shareholders is finalised, shares of TML Commercial Vehicles Ltd will be allotted and subsequently listed on both BSE and NSE.
During the interim period between allotment and listing, shares of TMLCV will not be tradable. The process of securing listing and trading permissions is expected to take 45–60 days from the date of filing applications with the stock exchanges.
Further Details for Shareholders
Tata Motors has stated that guidance on the cost of acquisition for the shares of Tata Motors and TMLCV will be provided in due course. All relevant updates, including official documents and investor instructions, will be shared via email and made available on the websites of Tata Motors, TMLCV, and the stock exchanges.
Summary
Tata Motors’ long-awaited demerger has come into effect from October 1, 2025, with October 14 designated as the record date for share entitlement. The move separates the company’s commercial and passenger vehicle businesses into distinct entities — a strategic restructuring aimed at unlocking shareholder value, improving business focus, and enhancing operational agility across both divisions.
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