Tata Motors shares gain 6% as demerger comes into effect, announces record date; check details

The stock closed 5.56% higher at ₹718.00 per equity share on Wednesday.

Furthermore, the auto giant 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 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.

In March 2024, the company’s board approved its demerger into two listed companies, with one housing its commercial vehicles (CV) business, along with its related investments, and the second for its passenger vehicles (PV) businesses, including PV, EV (Electric Vehicle), JLR (Jaguar Land Rover), and related investments.

Tata Motors' CV business demerged into TMLCV and its existing PV business Tata Motors Passenger Vehicles Limited (TMPV) will be merged into Tata Motors (TML), the existing listed entity.

“Tata Motors has scripted a strong turnaround in the last few years. The three automotive business units are now operating independently and delivering consistent performance. This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility. This will lead to a superior experience for our customers, better growth prospects for our employees, and enhanced value for our shareholders,” N Chandrasekaran, Chairman of Tata Motors, had commented when the demerger was first approved.

Tata Motors has a total market capitalisation of ₹2.63 lakh crore, as of October 1, 2025, according to data on the NSE.