Tata Motors share price slipped nearly 2% to hit an intra-day low of Rs 645.50 as investor attention turned to the company’s crucial virtual shareholders’ meeting scheduled for later today. The meeting holds significance as stakeholders are set to vote on the much-anticipated demerger proposal, which aims to split the conglomerate’s operations into two standalone entities. This includes the Passenger Vehicles (PV) and Commercial Vehicles (CV).
In an exchange filing on April 4, the company said, “we hereby wish to inform that Meeting of the Equity Shareholders of Tata Motors is scheduled to be held on Tuesday, May 6, 2025 at 3.00 p.m (IST), for the purpose of considering, and if thought fit, approving the Composite Scheme of Arrangement amongst the Company, TML Commercial Vehicles Limited, Tata Motors Passenger Vehicles Limited and their respective shareholders (“the Scheme”).”
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The shareholder meeting, held online through video conferencing, is set to determine the future structure of one of India’s oldest automakers. Tata Motors had earlier announced that only those who held shares as of March 28 would be eligible to vote on the proposal. So, if you bought the stock after that date, you won’t have a say in this game changing decision.
A two-way split
The company is proposing to divide itself into:
Tata Motors Commercial Vehicles Limited (TMLCV) – This will house the trucks, buses, and other heavy-duty offerings.
Tata Motors Passenger Vehicles Limited (TMPV) – This will take care of the cars, electric vehicles, Jaguar Land Rover (JLR), and related investments.
It is also worth noting that commercial vehicles unit will be spun off into a separate listed company, the existing Tata Motors entity will retain the PV+EV and JLR businesses. The names of these entities will change post-approval.
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