Tata Motors Limited (NSE: TATAMOTORS), one of India’s largest automobile manufacturers, is moving ahead with its much-anticipated corporate restructuring. The company has fixed October 14, 2025, as the record date for its demerger, marking a key milestone in its plan to unlock value and sharpen business focus.
Shareholders holding Tata Motors shares on or before the record date will be eligible to receive shares of the new entity being formed as part of the spin-off.
Demerger to Create Two Distinct Listed Entities
Under the approved scheme, Tata Motors will be reorganised into two separate listed companies to provide investors with clearer insights into each segment’s performance and growth potential:
- TMLCV Ltd – The newly formed company will house Tata Motors’ Commercial Vehicle (CV) business, encompassing trucks, buses, and light commercial vehicles.
- Tata Motors Ltd (Existing) – The current entity will retain the Passenger Vehicle (PV), Electric Vehicle (EV), and Jaguar Land Rover (JLR) businesses.
As per the demerger ratio, shareholders will receive one share of TMLCV for every one share of Tata Motors held on the record date. Additionally, around ₹2,300 crore worth of non-convertible debentures (NCDs) and associated liabilities will be transferred to the new company.
Regulatory Approvals and Next Steps
The National Company Law Tribunal (NCLT) has approved the demerger scheme, and it has been formally filed with the Registrar of Companies (RoC) as of October 1, 2025. Once completed, both Tata Motors and TMLCV will operate as independent listed entities, each with separate management teams, financial structures, and strategic growth plans.
Objective: Sharper Focus and Long-Term Value Creation
According to the company, the restructuring aims to streamline operations, improve capital allocation, and provide investors with clearer visibility into the distinct performance drivers of the passenger and commercial vehicle segments. The move is expected to enhance operational efficiency and unlock long-term shareholder value.
Summary
Tata Motors will complete its long-awaited demerger this week, with October 14, 2025, set as the record date. Shareholders will receive one share of TMLCV for each Tata Motors share held. The restructuring — approved by the NCLT and now filed with the RoC — will split the company into two independent entities focused on commercial and passenger vehicle segments, marking a major milestone in Tata Motors’ transformation journey.
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