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Tata Motors Ltd on Friday secured approval from the Mumbai bench of the National Company Law Tribunal (NCLT) for its restructuring plan, paving the way for the demerger of its passenger vehicle (PV) and commercial vehicle (CV) businesses from October 1.The tribunal in its order cleared the composite scheme of arrangement under which Tata Motors’ CV business will be spun off into TML Commercial Vehicles Ltd (TMLCV) while the PV business will be consolidated under Tata Motors, which will be renamed Tata Motors Passenger Vehicles Ltd.Both entities will be independently listed, with shareholders getting one share of TMLCV for every share held in Tata Motors. The scheme also provides for transfer of non-convertible debentures worth ₹2,300 crore to the CV entity.Tata Motors said the move will unlock value and give both businesses sharper strategic focus, improved agility, and clearer capital allocation. Live EventsAhead of the restructuring, the automaker carried out a major overhaul of its leadership. Girish Wagh, who has been leading the CV division, will take charge as MD & CEO of TMLCV. Shailesh Chandra, currently spearheading the passenger EV vertical, will become MD & CEO of Tata Motors, which will house the PV business. The reshuffle also includes a change in finance leadership. Group chief financial officer PB Balaji will step down on November 17 to take over as CEO of Jaguar Land Rover Plc in the UK. He will be succeeded by Dhiman Gupta, currently CFO of Tata Passenger Electric Mobility, who will move into the Group CFO role at Tata Motors. Balaji, however, will continue his association with Tata Motors as a non-executive director on its board.Alongside the management changes, the board has been reconstituted. Independent directors Hanne Sorensen, KV Chowdary, and Guenter Butschek will step down from Tata Motors to join the TMLCV board. To fill the gap, the company has appointed Sudha Krishnan, a former officer of the Indian Audit and Accounts Service with four decades of experience in finance and policy, as an independent director on Tata Motors’ board. The company has also approved the second tranche of its 2024 long-term incentive plan, granting 4,79,746 performance share units (PSUs) to 384 employees across Tata Motors and its subsidiaries. Each PSU can be converted into equity within a year of vesting.Tata Motors said the creation of two listed companies with mirrored shareholding would enable each business to pursue its growth trajectory independently while attracting focused investor interest.Add as a Reliable and Trusted News Source Add Now!
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Read More News onTata Motors demergerNational Company Law TribunalGirish Wagh CEO TMLCVTMLCV formationTata Motors LtdTata Motors restructuringTML Commercial Vehicles LtdTata Motors Passenger Vehicles Ltdtata motors ltd
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(You can now subscribe to our Economic Times WhatsApp channel)Read More News onTata Motors demergerNational Company Law TribunalGirish Wagh CEO TMLCVTMLCV formationTata Motors LtdTata Motors restructuringTML Commercial Vehicles LtdTata Motors Passenger Vehicles Ltdtata motors ltd(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless
