The two businesses of Tata Motors Limited (TML) will now operate separately, and the board of directors has approved the demerger plan. This marks the beginning of the process of demerger of Commercial Vehicles Limited (TMLCV) and Tata Motors Passenger Vehicles (TMPV). The company provided this information in a statement to the stock exchanges. Under the plan, TML will demerge its commercial vehicle activities, which include the CV business, while the existing passenger vehicle business of TMPV will be merged with the listed entity TML.
How long will the split take?
Under this plan, TML shareholders will receive one share of TMLCV, the value of which will be Rs 2 per share. The purpose of this demerger is to help the business groups optimize their separate strategies and address liability. This arrangement will not have any significant impact on employees, customers, creditors and other business partners. This demerger process may take 12-15 months to complete.
the name will be changed
According to the company, once the demerger plan comes into effect, both TMLCV and TML will be renamed. As a result, there will be two separate listed companies. The commercial vehicle business and its related investments will be known as TML and the passenger vehicle and electric vehicle (TPEM) business, JLR and its related investments, will be known as TMPV. Let us tell you that as per the company’s financial results, Tata Motors Limited’s total revenue related to the commercial vehicle business was Rs 73,116.64 crore, which accounts for 99% of the total revenue for the financial year 2023-24.
