Tata Motors to demerge businesses into two separate listed companies
Tata Motors, on Monday, said that the board of directors has approved the proposal of demerger of Tata Motors Ltd into two separate listed companies housing. One entity will encompass the Commercial Vehicles business along with its associated investments, while the other will include the Passenger Vehicles businesses, comprising PV, EV, JLR, and their associated investments. This demerger will be executed through an NCLT scheme of arrangement.
Importantly, all shareholders of TML will retain identical shareholding in both listed entities following the demerger. Also read: Tata Investment Corp shares rises 5%, rallied 18% in last five days; Here's why 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.
“Tata Motors has scripted a strong turnaround in the last few years. The three automotive business units are now operating independently and delivering consistent performance. This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility.
This will lead to a superior experience for our customers, better growth prospects for our employees and, enhanced value for our shareholders," said N Chandrasekaran, Chairman at Tata Motors. Also read: NTPC share price rises 4%, scales 52-week highs: Should you Buy, Sell or Hold? The demerger represents a natural evolution following the earlier subsidiarization of PV and EV businesses in 2022. This move will enhance the autonomy of each business segment, enabling
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