Tata Motors Share Price in Focus; Shareholders to Vote on Demerger Plan on May 6

Tata Motors moves ahead with its much-anticipated restructuring. The automaker has announced that a key vote on its proposed Composite Scheme of Arrangement—involving the reorganisation of its commercial and passenger vehicle businesses

Shareholder Meeting Scheduled Following NCLT Approval

Tata Motors’ shareholder meeting set for Tuesday, May 6, 2025, at 3:00 PM via video conferencing is a crucial step in advancing its demerger proposal.

This meeting follows an order issued by the National Company Law Tribunal (NCLT), Mumbai Bench, on March 25, 2025, directing the company to seek shareholder approval for the Composite Scheme of Arrangement.

What’s in the Restructuring Plan?

The proposed demerger will see Tata Motors’ business split into two focused entities:

• The Commercial Vehicles (CV) division will be spun off into a new company named TML Commercial Vehicles Limited (TMLCV).
• Simultaneously, Tata Motors Passenger Vehicles Limited (TMPV) currently a subsidiary will be merged into the parent entity, Tata Motors Limited.

What Should Shareholders Know?

Shareholders holding equity as of the cut-off date, March 28, 2025, will be eligible to vote on the scheme. Voting will be facilitated through the NSDL e-voting platform, either prior to or during the meeting.

Importantly, the plan includes a 1:1 share entitlement ratio, meaning, each shareholder of Tata Motors Limited will receive one equity share of face value ₹2 in TMLCV for every one equity share of ₹2 they hold in Tata Motors Limited.

This ensures that existing shareholders maintain equal ownership in both resulting entities—TMLCV and the integrated Tata Motors.

What’s the Strategic Rationale?

Tata Motors sees this demerger as a move to unlock long-term value by allowing each segment to focus independently on its core strengths. The separation is expected to bring greater operational flexibility, sharper capital allocation, and tailored growth strategies for the commercial and passenger vehicle segments.

Share Price Performance

Tata Motors Limited witnessed a sharp decline in its share price, falling by ₹52.55 or 8.56% at 9:35 AM on the NSE to an intraday high of ₹561.30. The stock opened at ₹560.50 and touched a low of ₹555.55, reflecting heightened volatility in early trade.

Conclusion

Tata Motors’ upcoming shareholder vote on May 6 marks a pivotal moment in its corporate restructuring journey. The proposed demerger aims to unlock greater value by allowing each business’ commercial and passenger vehicles to operate with sharper strategic focus and operational efficiency.

If approved, the move could streamline growth trajectories and potentially enhance shareholder value in the long term. Investors and stakeholders will be closely watching the outcome, as it sets the stage for the next phase of Tata Motors’ evolution.

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