Tata Motors Limited has informed the Exchange about Certified true copy of the Orders obtained from the Hon ble National Company Law Tribunal, Mumbai Bench in the matter of the Composite Scheme of Arrangement amongst Tata Motors Limited, TML Commercial Vehicles Limited and Tata Motors Passenger Vehicles Limited and their respective shareholders

Demerger ratio announcedCore business divestedScheme filed with the NCLTStrategic Transactions View source PDF Explain this filing

TMPV · price

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prior close

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announcement price

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On the reaction day the stock moved 0.1 pts less than Nifty 100 and in line with its Passenger Cars & Utility Vehicles peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

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AI summary

The NCLT Mumbai Bench has sanctioned the Composite Scheme of Arrangement for Tata Motors, involving three companies: Tata Motors Limited, TML Commercial Vehicles Limited (TMLCV), and Tata Motors Passenger Vehicles Limited (TMPV). Under the scheme, the commercial vehicles business will be demerged into TMLCV, and the passenger vehicles subsidiary TMPV will be merged into Tata Motors Limited. Shareholders will receive 1 share of TMLCV (face value ₹2) for every 1 share of Tata Motors (face value ₹2) held, creating mirrored shareholding. Post-scheme, the existing Tata Motors will be renamed Tata Motors Passenger Vehicles Limited, and TMLCV will be renamed Tata Motors Limited, with both being separately listed. NCDs worth ₹2,300 crore will be transferred to TMLCV, and the scheme is set to become effective from October 1, 2025, with the appointed date being July 1, 2025.

Likely market impact

Tata Motors shareholders will become shareholders of two separately listed entities, gaining direct exposure to both the commercial vehicles and passenger vehicles businesses. This restructuring is expected to unlock value through clearer price discovery, sharper strategic focus, and better capital allocation for each business, though it may also lead to short-term share price volatility as the market adjusts to the new structure.