Tata Motors Ltd.TATAMOTORS₹672.50 -0.06%

Shares of Tata Motors Ltd. are in focus as its corporate restructuring scheme is set to become effective on Wednesday, October 1, 2025. This move finalizes the separation of its Commercial Vehicle (CV) business from its Passenger Vehicle (PV) operations.

The demerger plan, originally approved by the board on March 4, 2024, and recently sanctioned by the NCLT Mumbai bench, is designed to bring greater strategic focus and agility to each segment. 

The scheme involves the creation of two distinct listed companies. The commercial vehicle business will be demerged into TML Commercial Vehicles Limited (TMLCV), which will eventually be renamed and listed under the name TML. 

Conversely, the existing listed entity, Tata Motors Limited, will merge with its PV subsidiary, Tata Motors Passenger Vehicles Limited, and will house the PV, Electric Vehicle (EV), Jaguar Land Rover, and related investments, ultimately being listed under the name TMPV.

Shareholders of Tata Motors will receive shares in the new Commercial Vehicles entity via a straightforward 1:1 share entitlement ratio, meaning they will get one fully paid-up share in TMLCV of face value ₹2 for every one share they currently hold in Tata Motors. 

The record date for this share entitlement has yet to be announced.

The company also announced a key management reshuffle. Girish Wagh has been appointed as the Additional Director, Managing Director, and CEO of the newly formed TML Commercial Vehicles Ltd. Simultaneously, Shailesh Chandra has been appointed as the Additional Director, Managing Director, and CEO of the passenger vehicle entity company, where he will continue to lead the electric vehicle subsidiary. Both appointments are effective October 1, 2025. Additionally, PB Balaji, who is set to join JLR as its Global CEO, has been appointed as a director on the boards of both the PV and CV entities, ensuring continuity across the restructured businesses.

Over the last five years, this stock has delivered multibagger returns of more than 405%.

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Note: The stock prices mentioned are as of 3:30 pm.

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