Description

TATA MOTORS LTD demerger of Commercial Vehicles Business into TML Commercial Vehicles Ltd with 1:1 share allotment ratio. Record date set for 14 October 2025.

Summary

TATA MOTORS LTD (Scrip Code 500570) has set 14 October 2025 as the Record Date for its Composite Scheme of Arrangement involving the demerger of its Commercial Vehicles Business into TML Commercial Vehicles Ltd (TMCVL). Shareholders of TATA MOTORS will receive 1 equity share of TMCVL (face value Rs.2) for every 1 share held in TML (face value Rs.2). The scheme has been approved by the Hon’ble National Company Law Tribunal, Mumbai Bench. TMCVL shares will be listed on BSE Limited subject to compliance with requisite formalities.

Key Points

  • Demerger of Commercial Vehicles Business from TATA MOTORS LTD into TML Commercial Vehicles Ltd
  • Approved by National Company Law Tribunal, Mumbai Bench
  • Share entitlement ratio: 1:1 (1 TMCVL share for every 1 TML share)
  • Face value of both companies: Rs.2 per share
  • Ex-entitlement date: 14 October 2025 (Settlement DR-735/2025-2026)
  • Special Pre-open Session (SPOS) to be conducted on 14 October 2025
  • New entity TML Commercial Vehicles Ltd to be listed on BSE Limited

Regulatory Changes

Pursuant to SEBI Circular No. CIR/MRD/DP/01/2012 dated January 20, 2012, the scrip will be part of Call Auction in Pre-open Session (Special Pre-open Session - SPOS) on 14 October 2025. Trading members should refer to Exchange notice no. 20120216-29 dated February 16, 2012 for detailed procedures on Special Pre-open Session.

Compliance Requirements

  • Trading members must note the record date and ex-entitlement date of 14 October 2025
  • Special trading arrangements apply through SPOS mechanism on the ex-date
  • Shareholders must ensure their holdings are properly recorded as of the record date to receive TMCVL shares
  • TML Commercial Vehicles Ltd must complete listing formalities with BSE Limited

Important Dates

  • Notice Date: 06 October 2025
  • Record Date: 14 October 2025
  • Ex-Entitlement Date: 14 October 2025
  • Settlement Number: DR-735/2025-2026
  • Special Pre-open Session: 14 October 2025

Impact Assessment

Market Impact: High - This is a significant corporate restructuring involving one of India’s largest automobile manufacturers. The demerger separates the Commercial Vehicles Business into a standalone listed entity, affecting all TATA MOTORS shareholders who will receive proportionate shares in the new company.

Operational Impact: The 1:1 allotment ratio ensures no dilution for existing shareholders. The special pre-open session on the ex-date aims to ensure orderly price discovery for both entities post-demerger. Trading members and investors need to account for two separate securities in their portfolios post-demerger.

Investor Impact: All TML shareholders as of record date will automatically receive TMCVL shares in their demat accounts. This creates a new investment opportunity in a focused commercial vehicles entity while maintaining exposure to the passenger vehicle business through existing TML shares.

Impact Justification

Major corporate restructuring of TATA MOTORS involving demerger of entire Commercial Vehicles Business with 1:1 share entitlement, creating new listed entity TMCVL affecting all TML shareholders