Tata Motors sets October 14 as record date for demerger
What's the story
Tata Motors has announced the record date for its commercial vehicles business demerger. The Mumbai-based automaker said in a regulatory filing that Tuesday, October 14, 2025, will be the cutoff date. Shareholders who hold Tata Motors shares on this date will be eligible to receive stock of the newly formed entity, TML Commercial Vehicles Ltd (TMLCV). Shares of TMLCV are proposed to be listed on both BSE and NSE.
Demerger specifics
Tata Motors shareholders will get one equity share of TMLCV
Under the approved scheme, shareholders will get one equity share of TMLCV (face value ₹2 each) for every share they hold in Tata Motors. This means their current holding will be mirrored in the new entity. The demerger is part of a larger restructuring plan involving Tata Motors Limited (the demerged entity), TMLCV (the resulting company), and Tata Motors Passenger Vehicles Ltd (TMPV, the amalgamating entity).
Strategic move
Brokerage views on Tata Motors's demerger
The demerger is expected to sharpen Tata Motors' business focus and unlock potential value across its passenger and commercial vehicle segments. Domestic brokerage firm JM Financial called the demerger a key milestone. The firm also noted that carving out the CV segment could increase stock volatility as the market rebalances PV-only valuation. The stock closed 5.56% higher at ₹718.00 per equity share today.