Tata Motors has quashed media reports suggesting that Tata Sons is in the process of establishing a holding company for its passenger and commercial vehicle businesses, which are being separated and registered as two distinct entities.

What Happened: The Tata Group firm issued a press release denying the contents of the report calling it factually incorrect and misleading.

The company said that the demerger is being carried out through a composite scheme of arrangements, which is subject to approval by the NCLT, and the process is currently in progress.

In March 2024, the company’s board had approved the demerger which would create two separate listed companies. One entity would focus on the commercial vehicles (CV) business along with its related investments, while the other would encompass the passenger vehicles (PV) business, including PV, electric vehicles (EV), and Jaguar Land Rover (JLR) and their associated investments.

See Also: GRSE Shares Back In Green After Strong Q2 Results

The report said that the boards of these entities will be restructured after the formation of the new entity. The holding company will be chaired by Tata Group Chairman N. Chandrasekaran, along with other senior executives, it added. Tata Motors’ CFO PB Balaji was to reportedly assume a leadership position in the passenger vehicles entity. The demerger is expected to be completed in the first quarter of 2025-26.

Earlier this week, the company’s share prices sank below the ₹800 level for the first time since January. This followed the company’s dismal Q2 results where net profit slipped 11% to ₹3,343 crore and revenue from operations slumped around 3.5% year-on-year, to ₹1.01 lakh crore. Both the figures missed analysts’ estimates.

Price Action: Tata Motors’ shares lost 1.35% to ₹775.60 on Thursday.

Read Next: Zomato Shares Jump Over 4% Amid Chatter Of Nifty 50 Entry