Tata Motors is a leading Indian automobile manufacturer producing a wide range of passenger vehicles, commercial vehicles, and electric vehicles. The company also owns the premium Jaguar Land Rover brand. In 2024, Tata Motors announced a strategic decision to split its commercial vehicle (CV) business and passenger vehicle (PV) & electric vehicle (EV) businesses into two separate listed entities to improve efficiency and unlock value.
Demerger Plan & Key Dates
Demerger Approval and Effective Date
The board of Tata Motors approved the demerger plan in early 2024 to streamline operations. The restructuring became effective from October 1, 2025.
Demerger Record Date & Ex-Date
The company fixed October 14, 2025 as the record date for determining shareholder eligibility. Investors who held Tata Motors shares on or before this date were entitled to receive shares of the new demerged company.
Listing Timeline & Listing Price
Following the demerger, Tata Motors’ passenger vehicle business continues under the main listing but is renamed Tata Motors Passenger Vehicles Ltd (TMPV). The commercial vehicle arm is now a separate company called TML Commercial Vehicles Ltd (TMLCV). The TMPV shares opened near ₹400 per share during the special price discovery session, reflecting the value of the passenger and EV business excluding commercial vehicles.
Shareholders & Entitlement Ratio
Shareholders received shares of the new commercial vehicle company in a 1:1 ratio. This means for every one share of Tata Motors held as of the record date, investors received one share of TMLCV (face value ₹2). The overall ownership value remains the same but is now distributed between two separate companies.
Post-Demerger Stock Prices & Company Names
After the demerger, investors now hold shares in two distinct listed companies:
- Tata Motors Passenger Vehicles Ltd (TMPV) – Focused on passenger and electric vehicles, including the JLR business.
- TML Commercial Vehicles Ltd (TMLCV) – Concentrates on commercial, light, and heavy vehicles.
The TMPV share price adjusted to around ₹400, while TMLCV is expected to list separately around November 2025. Analysts estimate a combined fair value of ₹730–₹750 when both entities trade fully. This price adjustment explains why Tata Motors share is falling today, as the market recalibrates post-demerger.
Dividends, Bonus & Multibagger Potential
Currently, Tata Motors has not announced any post-demerger dividends or bonus shares. However, the management has highlighted that the split will help each company manage capital more efficiently, improve margins, and focus on growth segments like electric vehicles and commercial mobility. Many market experts believe this restructuring could unlock significant long-term value and turn Tata Motors into a potential multibagger stock over the next few years.
Why Tata Motors Share Is Falling Today
The sharp drop in tata motors share price today (nearly 40% in NSE pre-open) is purely a technical adjustment due to the separation of the CV business. The market now values only the passenger and JLR business in TMPV, while the CV value will reflect in the soon-to-be-listed TMLCV shares. This adjustment does not mean investors lost money — it’s a value redistribution across the two new stocks.
What Should Investors Do?
- Hold your shares if you believe in Tata Motors’ long-term growth story.
- Wait for TMLCV’s separate listing to see the combined market value of both entities.
- Keep an eye on tata motors share news today for updates on listing and ratio confirmations.
Disclaimer
This article is for informational purposes only and should not be considered investment advice. Investors are advised to conduct their own research or consult a financial advisor before making any investment decisions related to Tata Motors or its demerged entities.
FAQs
Q1. Why Tata Motors share is falling today?
The share price has fallen because Tata Motors has demerged its commercial vehicle business. The existing stock now reflects only the passenger and JLR business valuation.
Q2. What is the Tata Motors demerger ratio?
The demerger ratio is 1:1 — shareholders receive one share of TML Commercial Vehicles Ltd for every one share of Tata Motors held on the record date.
Q3. What is the listing price of the new companies?
After demerger, TMPV shares opened near ₹400 per share, while TMLCV is expected to list separately in November 2025. Combined, both shares roughly reflect Tata Motors’ pre-demerger valuation.
