Demerger of CV Business Undertaking of Tata Motors into a Separate Listed Company

Tata Motors Limited’s Board has approved a Composite Scheme of Arrangement among Tata Motors (TML), TML Commercial Vehicles Limited (TMLCV), Tata Motors Passenger Vehicles Limited (TMPV), and their shareholders under the Companies Act, 2013. The Scheme involves demerging TML’s Commercial Vehicle business into TMLCV and merging TMPV’s Passenger Vehicle business into TML. Upon effectiveness, TMLCV and TML will be renamed, resulting in two listed entities: TML (Commercial Vehicles) and TMPV (Passenger Vehicles, Electric Vehicles, JLR). Shareholders of TML will receive one TMLCV share for every TML share held. The Scheme aims to enhance business agility, accountability, and shareholder value without negatively impacting employees, customers, creditors, or partners. It requires approvals from shareholders, creditors, and regulators, taking 12-15 months. PwC provided the share entitlement report, SBI Capital Markets the fairness opinion, AZB & Partners the legal advice, and Deloitte Touche Tohmatsu India LLP the tax advice.