Tata Motors stock gained over 4% after shareholders gave an overwhelming nod to the company’s plan to split into two listed entities. As of 9:23 AM, the shares were trading 3.71% higher at Rs 672.25
In a major step forward, Tata Motors received 99.99% shareholder approval to demerge its Commercial Vehicle (CV) business. The move will create two independently listed companies — one focused on passenger vehicles and the other on commercial vehicles.
The decision, first announced in March 2024, aims to bring sharper strategic focus to each segment. Tata Motors believes that separating the businesses will unlock greater value, improve operational agility, and enable more tailored capital allocation.
As per the approved plan, shareholders will receive one share of the new CV entity for every Tata Motors share they currently hold. The demerger will not impact overall shareholder wealth but will allow investors to independently value and invest in the two businesses.
The company communicated the outcome via a regulatory filing on Tuesday evening, highlighting the near-unanimous support for the move.
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