Tata Motors shares gain ahead of demerger record date
Tata Motors shares climbed 2.4% to ₹400.30 as the company moved forward with the long-awaited split of its passenger and commercial vehicle businesses.
If you already own Tata Motors shares as of the record date, you'll soon get an equal number of shares in the new Tata Motors Commercial Vehicles Ltd (TMLCV) for every share held in Tata Motors Passenger Vehicles Ltd (TMPV).
These new shares should hit your account in about a month, with stock market listings expected by late November or early December 2025.
Analysts upbeat about split's potential
Analysts are pretty upbeat about the move. They say the split will help investors see the true value of each business—ICICI Securities values the commercial vehicle arm at ₹300 per share, while Nomura puts both divisions around ₹365-367.
There might be some short-term ups and downs, but experts believe both TMLCV and the passenger vehicle unit (TMPV) have solid long-term growth potential, especially with TMPV's connection to Jaguar Land Rover's recovery.