Tata Motors demerger: Auto major to hold shareholder meeting on May 6; key details to know

Tata Motors is slated to hold a shareholders' meeting to deliberate on its much-anticipated demerger on Tuesday, May 6, 2025, at 3.00 p.m. IST, the automaker said in a regulatory filing on Friday.

The automaker said on April 4 that the meeting will be held via “video conferencing (VC) and other audiovisual means (OAVM)” to deliberate and approve splitting Tata Motors into two separate entities.

Demerger eligibility

Tata Motors set Friday, March 28, 2025, as the cut-off date for the demerger. This means anyone who bought Tata Motors shares after March 28 will not be entitled to exercise their voting rights on the split.

“The voting rights of the equity shareholders shall be in the same proportion to the paid-up equity share capital held,” the company said.

Further, the remote shareholder e-voting will commence on Friday, May 2, at 9 a.m. IST and end on Monday, May 5, at 5 p.m. IST, before the meeting. The National Securities Depository Limited (NSDL) will disable the remote e-voting system thereafter.

Tata Motors is also providing an e-voting facility at the May 6 meeting.

Share entitlement

In a filing dated August 1, 2024, the automobile company had set the share entitlement ratio at 1:1, which means a Tata Motors shareholder with one fully paid-up share of ₹2 will receive one fully paid-up share of ₹2 in Tata Motors Commercial Vehicles Limited (TMLCV) of the same class.

Background

Tata Motors Ltd’s (TML) commercial vehicle business will be demerged into Tata Motors Commercial Vehicles Limited (TMLCV).

Further, its existing PV business in Tata Motors Passenger Vehicles Limited (TMPV) will be merged into TML, the existing listed entity.

TMLCV and TML will be renamed upon receiving necessary approvals, resulting in two separate entities.

The commercial vehicles business and its related investment will be listed under the name TML. Its passenger vehicles, electric vehicles businesses, JLR, which will merge with the currently listed Tata Motors, will be listed under the name TMPV.

Demerger timeline

In August 2024, the auto manufacturer said that the demerger, subject to necessary shareholder, creditor and regulatory approvals, may take 12-15 months to complete.

According to the company's investor presentation, the split will be concluded or be effective by the third quarter of the 2025-26 fiscal year (Q3FY26).