BENGALURU - Indian automaker Tata Motors plans to demerge into two separate listed companies to refine focus on the passenger and electric vehicle segments, it said in an exchange filing on Monday.

The commercial vehicles business and its related investments will be spun in one entity and the passenger vehicles (PV) businesses, including electric vehicles (EV), Jaguar Land Rover and related investments, in another entity.

Shareholders of Tata Motors will continue to have an identical shareholding in both the listed entities, the company said.

The demerger will help in better growth prospects for employees and enhanced value for shareholders, Chairman N Chandrasekaran said in a statement.

The scheme of arrangement for the demerger shall be placed before the board in the coming months and will be subject to all necessary shareholder, creditor and regulatory approvals, which could take a further 12-15 months to complete, the company said.

The demerger will have no adverse impact on employees, customers, and business partners, it added.

(Reporting by Sethuraman NR and Ashna Teresa Britto; Editing by Mrigank Dhaniwala)