Tata Motors Limited has recently announced a restructuring of its business operations. This development will be effective from October 1, 2025 and the company will be split into two independent entities from which one will focus on passenger vehicles and the other on commercial vehicles, under a Composite Scheme of Arrangement which is approved by the National Company Law Tribunal (NCLT), Mumbai Bench.
Two Divisions, Two Identities
After the restructuring, Tata Motors Limited will officially be renamed as Tata Motors Passenger Vehicles Limited (TMPV). This newly named company will focus entirely on passenger cars, electric vehicles (EVs) and the investments in Jaguar Land Rover (JLR).
Meanwhile, Tata’s commercial vehicle business, which handles the company’s trucks, buses
and other heavy-duty vehicles, will be separated into an entirely new entity named TML Commercial Vehicles Limited (TMLCV). Interestingly, once the restructuring is complete, TMLCV will adopt the original Tata Motors Limited name which represents the commercial side of the brand.
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Importance to shareholders
To make the transition hassle free, the company has fixed October 14, 2025, as the record date for shareholders, which means that anyone holding shares of Tata Motors on that particular day will receive equivalent shares in the newly formed commercial vehicle company.
As the company explained in its filing, “The Company has fixed Tuesday, October 14, 2025, as the ‘Record Date’ to ascertain eligible shareholders of the Company who shall be issued and allotted 1 (one) share (face value of Rs 2/- each fully paid up) in TMLCV, for every 1 (one) share (face value of Rs 2/- each fully paid up) held in TML by them as on the Record Date.”
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Following this development, the share price of Tata Motors will be adjusted on the stock exchanges to reflect the separation, and the new TMLCV shares will be listed on both the BSE and NSE after regulatory approvals.
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