The countdown for the Tata Motors demerger begins. After the shareholders nod, all eyes are on the demerger details. What’s the ratio in which the business will be demerged and how will it impact the existing holdings of the Tata Motors shareholders? Here is every that you need to know.
When is the demerger happening?
While the vote is done, the actual split will take some time. The demerger process is expected to be completed by Q3 of FY26. That gives Tata Motors over a year to separate the two divisions cleanly and list them independently on the stock exchange.
Shareholders Say ‘Yes’
Tata Motors plan to split its business into two separate listed companies got a thumbs up from its shareholders. In a rare show of near-unanimity, a whopping 99.9995% of votes were cast in favour of the demerger. Out of more than 2.73 billion shares, only around 13,700 votes were against it. That is as close to 100% approval as it gets in corporate India.
One company will now become two
Many might be wondering now of what exactly will be changing? Tata Motors is carving itself into two new listed entities:
One for its Passenger Vehicles (PV) business, including EVs and luxury brand Jaguar Land Rover
Another for its Commercial Vehicles (CV) arm, which includes trucks and buses
Every existing shareholder will receive one share of the new CV company (TMLCV) for every Tata Motors (TML) share they already own. Both will have a face value of Rs 2.
Tata Motors share price
Even before the split officially takes place, the market is reacting. Tata Motors share price has been on an upward run, gaining 9% in just two days and rising 16% in the past month. That said, the stock is still recovering from a rough patch. It is down 15% over the past six months and has fallen 32% in a year.
Dividend and Q4 results coming up next
Tata Motors is all set to announce its Q4 results on May 13, and with that, the company’s board will also discuss declaring a dividend for FY25. This will be a key moment to assess how the company is performing before it splits into two.