Tata Motors demerger: Why is the stock down 40% from previous close? All you need to know

“The Company has fixed Tuesday, October 14, 2025, as the ‘Record Date’ to ascertain eligible shareholders of the Company who shall be issued and allotted 1 (one) share (face value of ₹2/- each fully paid up) in TMLCV for every 1 (one) share (face value of ₹2/- each fully paid up) held in TML by them as on the Record Date (as per Share Entitlement Ratio under the Scheme),” Tata Motors had said in a statement.

TML will continue as a listed entity. Following the scheme, Tata Motors Limited will be renamed Tata Motors Passenger Vehicles Limited and will continue to operate its passenger vehicle business, including investments in the electric vehicle segment and JLR, the company added. TML Commercial Vehicles Limited shall be renamed as Tata Motors Limited.

From the date of TMLCV’s share allotment until its listing on the BSE and NSE, its shares will not be available for trading. Typically, obtaining listing and trading approval takes 45–60 days after submitting the required applications to the stock exchanges.

As a part of the demerger plan, the automobile company had set the share entitlement ratio at 1:1, which means a Tata Motors shareholder will receive one fully paid-up share of ₹2 in Tata Motors Commercial Vehicles Limited (TMLCV) of the same class.

However, according to media reports, for the commercial vehicle (CV) business, no firm listing date has been set yet, but the company expects it to be completed within the next four to six weeks, likely by mid-November.

In a regulatory filing on Monday, Tata Motors said, “We wish to inform you that the Ministry of Corporate Affairs (“MCA”) has issued a Fresh Certificate of Incorporation dated October 13, 2025, changing the name of the Company from “Tata Motors Limited” to “Tata Motors Passenger Vehicles Limited.”

The company also stated that it is in the process of submitting the necessary applications to the stock exchanges to update its name in their records and on their official websites. “TMLCV shall take necessary steps to change its name to ‘Tata Motors Limited’ in due course,” the auto major added.

The auto giant this month had set October 14 as the record date for ascertaining the shareholders who shall be issued and allotted shares of the demerged entity. This means the very next day after the record date, Tata Motors’ existing shares will turn into the ex-commercial vehicle business and will be renamed Tata Motors Passenger Vehicles Ltd (TMPVL).

As part of its demerger plan, the firm had set the share entitlement ratio at 1:1, which means a Tata Motors shareholder will receive one fully paid-up share of ₹2 in Tata Motors Commercial Vehicles Limited (TMLCV) of the same class.

Additionally, the company fixed October 10 as the record date for determining the debenture holders of the identified non-convertible debentures (NCD) to be transferred from the company to TMLCV.

Tata Motors' commercial vehicle business will be demerged into Tata Motors Commercial Vehicles Limited (TMLCV). Further, its existing PV business in Tata Motors Passenger Vehicles Limited (TMPV) will be merged into TML, the existing listed entity.

TMLCV and TML will be renamed upon receiving necessary approvals, resulting in two separate entities.

The commercial vehicles business and its related investment will be listed under the name TML. Its passenger vehicle and electric vehicle businesses, JLR, which will merge with the currently listed Tata Motors, will be listed under the name TMPV.