Tata Motors’ long-awaited demerger has received NCLT approval, splitting the company into two separate entities. From October 1, 2025, the passenger vehicles (PV) and Jaguar Land Rover (JLR) division will operate independently, while a new company, TML Commercial Vehicles Ltd, will handle trucks and buses.

Key facts:

• Effective date: October 1, 2025

• Share swap ratio: 1:1 (1 share of Tata Motors = 1 share in the new CV company)

• Separate listings: Both companies will be listed individually on NSE & BSE

Impact on shareholders:
If you own 100 Tata Motors shares, post-demerger, you’ll hold 100 PV + JLR shares and 100 CV shares. Market re-pricing may occur, but the overall investment value remains the same.

Why the demerger?
PV + JLR and CV are different businesses:

• PV + JLR: High-growth, EVs, premium cars

• CV: Stable, cyclical, tied to infrastructure growth

According to Chairman N. Chandrasekaran, this split ensures strategic focus, fundraising ability, and investor clarity, eliminating the “conglomerate discount.”

Bottom line: Shareholders now have the choice to invest in growth-focused PV + JLR or stable CV business, or both.