The Tata Motors Demerger Composite Scheme of Arrangement between TML, TMLCV, TMPV, and shareholders is approved by the board of Tata Motors.
The Board of Directors of Tata Motor Limited (TML) has approved a Composite Scheme of Arrangement between TML, TML Commercial Vehicles Limited (TMLCV), Tata Motor Passenger Vehicles Limited (TMPV), and their respective shareholders in accordance with Sections 230–232 and other applicable provisions of the Companies Act, 2013 (“Scheme”). This approval follows the announcement made on March 4, 2024.
The demerger of Tata Motors Ltd. into two distinct listed businesses has been approved by the board of the firm. As part of the strategy, Tata Motor will demerge its CV division and all of its investments in TML Commercial Vehicles Ltd. It will be merged with the extant Tata Motor passenger car division. The PV division, operating under the name Tata Motors Passenger Vehicles Ltd., comprises the EV division, JLR, and their associated investments.
When the plan takes effect, TML Commercial Vehicles and Tata Motors will become two separate listed businesses, with new names. The demerger is anticipated to be completed in a period of 12 to 15 months.
As per the Scheme, TML shareholders will receive ONE share of TMLCV with a face value for every ₹ 2 fully paid-up share held in TML of the same class। of ₹ 2/- (Entitlement Ratio).