Mumbai: Tata Motors has officially split its business into two distinct entities — one focusing on commercial vehicles and the other on passenger vehicles. The demerger took effect on October 1, 2025, and marks a strategic move to streamline operations and unlock shareholder value by separating the two business verticals. The company has been renamed Tata Motors Passenger Vehicles Limited, while the newly formed entity is Tata Motors Commercial Vehicles Limited (TMLCV).
What Happened on the Record Date?
The crucial record date was October 14, 2025, which determined the eligibility of shareholders to receive shares of the newly formed company. As per the 1:1 demerger ratio, for every share of Tata Motors held, investors will be allotted one fully paid share of TMLCV. So, if you owned 100 shares of Tata Motors before the record date, you will now also hold 100 shares of TMLCV.
Listing Timeline for TMLCV Shares
While an official listing date for TMLCV on the stock exchanges has not yet been confirmed, analysts expect it to happen within 60 days of the record date. Post-listing, experts anticipate the stock to trade in the range of Rs 320 to Rs 470, depending on market sentiment and investor response.
Share Price Volatility Post-Demerger
Following the record date, Tata Motors’ passenger vehicle unit stock saw sharp volatility. On the Bombay Stock Exchange (BSE), it opened at Rs 399 on Tuesday, compared to its previous close of Rs 660.90. This 40 percent drop, however, is not an actual loss in value but rather a price adjustment due to the demerger, reflecting the removal of the commercial vehicle business from the valuation.
Key Dates in the Demerger Process
The demerger journey began in August 2024, when the board approved the proposal. Shareholder voting followed, culminating in final approvals by May 2025. The effective demerger date was October 1, with shares allocated based on records as of October 14. Debentures tied to the commercial business were transferred to TMLCV on October 10.
