Tata Motors Ltd (TML) announces a demerger into two separate listed entities: one for commercial vehicles (CV) and related investments, and the other for passenger vehicles (PV), including electric vehicles and Jaguar Land Rover (JLR). Shareholders will maintain identical shareholding in both entities, with shares split in a 1:1 ratio. Analysts support the move, anticipating higher valuation for the PV division and improved synergy among units. The demerger aims to streamline Tata Motors’ business empire and reinforce accountability, empowering each unit to pursue growth strategies independently. Chairman N Chandrasekaran emphasizes the benefits for customers, employees, and shareholders.
Tata Motors to Split Into Two Listed Companies: CV and PV Businesses
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