Tata Motors to split business: Buy 1 share get 1 share free. Click for details

Tata Motors to split business: Buy 1 share get 1 share free. Click for details

Tata Motors is set to split into two separate listed entities, rewarding shareholders with free shares

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Tata Motors is planning to divide its business into two separate companies, giving shareholders one free share in the new company after the split. This demerger will create one company for commercial vehicles and related investments, while the other will focus on passenger vehicles, including electric vehicles (EVs), Jaguar Land Rover (JLR), and their related investments.

The demerger is being carried out through a National Company Law Tribunal (NCLT) scheme of arrangement. Shareholders of Tata Motors Limited will have the same shareholding in both new companies. The company will announce a record date to determine who is eligible to receive the new equity shares.

“The proposed demerger will help us improve focus and make us more agile to capitalize on opportunities in the CV market globally,” said Girish Wagh, Executive Director of Tata Motors, in the company’s Annual Report for 2023-24.

Sales and Share Performance

In the first quarter of the fiscal year 2025, Tata Motors sold 229,891 vehicles domestically and internationally, up from 226,245 units in the same period last year. However, total commercial vehicle sales dropped by 7% in June 2024, with 31,980 units sold compared to 34,314 units in June 2023. Passenger vehicle sales, including EVs, also fell by 8% to 43,624 units in June 2024 from 47,359 units in June 2023.

On Tuesday, July 2, Tata Motors shares were trading 1.73% lower at ₹984.70 per share on the NSE. Despite this, the shares have appreciated over 25% this year. Over the past one and two years, the stock has delivered returns of 65% and 138%, respectively. In the last five years, the stock has surged over 500%.