Tata Motors is a key part of the Tata Group and one of India’s largest automakers. It manufactures passenger vehicles, commercial vehicles, and also owns Jaguar Land Rover (JLR). In 2024, the company announced a plan to demerge its commercial vehicle business from its passenger vehicle (including EV and JLR) business to give more clarity and value to each arm.
Demerger Plan
The demerger plan involves carving out the Commercial Vehicles (CV) business into a new listed entity, while the existing entity will retain passenger vehicles, EV offerings, and JLR.
The share entitlement ratio is simple: for every 1 share of Tata Motors held, the shareholder will receive 1 share in the new CV company (1:1).
Effective Date & Listing Timeline
The demerger becomes legally effective from October 1, 2025.
The listing of the demerged entities is expected shortly thereafter, likely in November 2025 or in the following months, pending regulatory clearances.
Demerger Record Date
A key date for shareholders is the record date, by which they must hold Tata Motors shares to qualify for shares in the new CV entity. Tata Motors has fixed the record date as October 14, 2025.
On that date, the eligibility will be determined and new shares in the demerged CV firm will be allotted proportionately.
Shareholders & Allotment
- Shareholders holding Tata Motors shares as of the record date will be eligible for the new CV company shares.
- The allotment ratio is 1:1 — one share in the new CV firm for each share in Tata Motors.
- After the record date, Tata Motors shares will trade “ex-demerger.”
- Shareholders will effectively hold stakes in two listed companies: one for CV, one for PV/EV & JLR.
After Demerger Stock Price & Company Names
Once the demerger is effective and listings complete, Tata Motors will be renamed Tata Motors Passenger Vehicles Ltd (TMPV) for the PV/EV/JLR segment. The new CV arm will operate under TML Commercial Vehicles Ltd (TMLCV) initially.
Regarding the tata motors share price, it is expected to adjust to reflect the values of the two separate businesses. On the demerger effective date, the stock is likely to trade at a recomposed price considering the split.
Dividends & Bonus
No special bonus issue has been officially confirmed in published sources so far. Dividend policies for each new entity will likely be declared independently.
However, demergers also bring short-term volatility and re-rating risks as markets adjust to new stand-alone financials.
Disclaimer
This article is for informational purposes only and is not investment advice. The details such as dates, valuations, or outcomes may change based on regulatory timelines and market conditions. Investors should verify with official filings and consult financial advisors before making decisions.
FAQs
Q1: What is the record date for Tata Motors demerger?
The record date is set as October 14, 2025, for shareholders to be eligible to receive shares of the new commercial vehicle entity.
Q2: How many shares of the new CV firm will I get per Tata Motors share?
The entitlement ratio is 1:1 — for each share held in Tata Motors, you’ll receive one share of the demerged CV company.
Q3: What will happen to Tata Motors share price post-demerger?
Post-demerger, the share price is likely to adjust to reflect the split into CV and PV/EV & JLR businesses. Each entity will be valued independently by the market.
