Tata Motors demerger effective tomorrow; here's what shareholders need to know about record, listing dates

Tata Motors demerger record date to be fixed in October. 

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Tata Motors shares closed 1.5 percent higher at Rs 682.55 on the NSE on Tuesday, ahead of the company’s demerger that becomes effective from Wednesday, October 1.

The company had in August last year approved the demerger of its commercial and passenger vehicle businesses into two listed entities to sharpen focus and capitalise on growth opportunities.

Under the plan, the commercial vehicles business along with its related investments will be placed in one entity, while the passenger vehicles business — including electric vehicles, Jaguar Land Rover (JLR) and related investments — will form the second entity.

Post-demerger, the passenger vehicles arm will be renamed Tata Motors Passenger Vehicles Ltd (TMPVL). The commercial vehicles unit will be listed separately in November as Tata Motors Ltd (TML).

Tata Motors demerger record, listing dates

The record date for the demerger of the commercial vehicles unit will be set in mid-October, with the a listing to follow in November.

Shareholders will receive one share of the new commercial vehicles entity for every share they currently hold in Tata Motors.

Meanwhile, brokerage firm Jefferies said in a note on Tuesday that while it remains positive on India’s passenger vehicle demand, it sees challenges for JLR and is less certain about margin improvements in the passenger vehicle segment and the Iveco acquisition. Jefferies has maintained its ‘Underperform’ rating on Tata Motors with a price target of Rs 575.

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