14 May 2025
Shareholders Show Strong Support for Demerger Plan
Tata Motors is moving ahead with its plan to split its business into two separate listed companies. On May 6th, shareholders of the company gave their full support to the demerger proposal. This support is a big step forward in the overall process.
P. B. Balaji, the Group Chief Financial Officer of Tata Motors, shared that the demerger is going as planned. “He mentioned that the company is now waiting for the next step, which is approval from the National Company Law Tribunal (NCLT).”
Key Dates and What Happens Next
Now that shareholders have approved the plan, the matter goes back to the NCLT. According to Balaji, the company expects the tribunal’s approval between July and August, which is in the second quarter of the 2025-26 financial year (Q2FY26).
The company has set July 1st as the appointed date, which is the date used for accounting purposes. Meanwhile, October 1st will be the actual effective date, when the demerger officially comes into effect.
Internal Preparations Also in Progress
Along with the legal process, Tata Motors is also working internally to make the change smooth. Balaji said that the company has already decided which employees will go to which of the two new companies.
Moreover, the commercial vehicle business is preparing to shift to a new S4HANA IT system to make operations better.
Looking Ahead
Balaji also added that the demerger will help Tata Motors carry out its future plans more effectively. He said it “gives further wings to fly”, allowing each business to grow better on its own.
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