The stock price of Tata Motors decreased by 1.43% to reach ₹652 before the shareholders’ meeting which would decide on the company demerger. The virtual meeting conducted through video conferencing serves to complete the separation of Tata Motors into two independent business entities which will handle Passenger Vehicles (PV) and Commercial Vehicles (CV).
The company previously established March 28 as the day when shareholders gained voting eligibility for the demerger proposal. Shareholders who bought Tata Motors stock after the specified date will not receive voting privileges regarding the demerger proposal.
The Commercial Vehicles segment will operate as Tata Motors Commercial Vehicles Limited (TMLCV) while the Passenger Vehicles division which includes Electric Vehicles and Jaguar Land Rover will merge into Tata Motors Limited (TML) before obtaining its new name.
N Chandrasekaran as chairman stated that the demerger process enables each segment to pursue market-specific opportunities while delivering better customer experiences and maximizing shareholder value. The two business units started operating independently since 2021 with their own leadership teams.
Tata Motors shares traded at ₹658.95 at 9:34 am with a 0.40% decline which was slightly below the SENSEX’s flat performance.
