Tata Motors has received approval from the National Company Law Tribunal (NCLT) for its composite scheme of arrangement, involving the demerger of its commercial vehicles and passenger vehicles businesses. The scheme will be effective from October 1, 2025. Shareholders will receive 1 equity share in TML Commercial Vehicles Limited for every 1 share held in Tata Motors. Certain Non-Convertible Debentures will also be transferred.
NCLT Approves Tata Motors Demerger
The Hon’ble National Company Law Tribunal, Mumbai Bench, has sanctioned the composite scheme of arrangement amongst Tata Motors Limited, TML Commercial Vehicles Limited, Tata Motors Passenger Vehicles Limited, and their respective shareholders. This significant milestone was announced on September 26, 2025.
Demerger Effective Date
The Boards of the respective companies have resolved to make the scheme effective on October 1, 2025. The company will separately notify the effective date of the scheme and the record date for determining shareholders eligible to receive shares in TML Commercial Vehicles Limited (TMLCV).
Share Allotment Details
Shareholders of Tata Motors will receive 1 fully paid equity share in TMLCV (face value of ₹2) for every 1 fully paid equity share held in Tata Motors.
NCD Transfer
Certain Non-Convertible Debentures (NCDs) will be transferred to TMLCV. The record date for this purpose will be fixed and communicated to the exchanges upon the scheme becoming effective.
Details of NCDs to be Transferred to TML Commercial Vehicles Limited
The NCDs to be transferred as part of the scheme are as follows:
- INE155A08423 [E-30A]: ₹500 crore, Redemption Date: May 29, 2026
- INE155A08407 [E-28B – (Tranche I)]: ₹250 crore, Redemption Date: December 30, 2026
- INE155A08415 [E-28B (Tranche II)]: ₹250 crore, Redemption Date: January 29, 2027
- INE155A08449 [E-31A (Tranche I)]: ₹500 crore, Redemption Date: March 26, 2027
- INE155A08464 [E-31A (Tranche III)]: ₹800 crore, Redemption Date: March 27, 2028
The total value of NCDs to be transferred is ₹2,300 crore.
Source: BSE
