Post by : Rameen Ariff

Tata Motors shares opened at ₹400 each during a special pre-market session, reflecting a sharp 39.5% drop (₹260.75 per share) from the previous close. The decline comes after the company executed the demerger of its commercial vehicle (CV) business.

As per the demerger plan, Tata Motors has fixed October 14, 2025, as the record date to identify shareholders eligible to receive shares of the new entity, Tata Motors Commercial Vehicles Limited (TMLCV). Under the share entitlement ratio of 1:1, every Tata Motors shareholder will get one fully paid-up share of ₹2 in TMLCV for each share they hold in Tata Motors.

Following the demerger, Tata Motors Limited will be renamed Tata Motors Passenger Vehicles Limited (TMPVL), continuing its passenger vehicle and electric vehicle businesses, including Jaguar Land Rover (JLR) operations. Meanwhile, TMLCV will take over the commercial vehicle business and will be renamed Tata Motors Limited once approvals are in place.

Shares of TMLCV will not be tradable until the company completes its listing on the BSE and NSE, a process expected to take 45–60 days. The company anticipates that trading may begin by mid-November, although no firm date has been set yet.

In a recent regulatory update, Tata Motors confirmed that the Ministry of Corporate Affairs issued a fresh certificate of incorporation on October 13, 2025, officially renaming the listed entity as Tata Motors Passenger Vehicles Limited. Applications are now being submitted to stock exchanges to reflect these changes in their records.

Additionally, the company fixed October 10 as the record date for debenture holders whose non-convertible debentures (NCDs) will transfer to TMLCV.

With this strategic move, Tata Motors separates its commercial and passenger vehicle operations into two distinct entities. The commercial vehicle business will be listed under TML, while the passenger vehicle and EV business, including JLR, will operate under TMPVL, ensuring focused growth and clear operational identity for both arms.

The demerger is expected to unlock value for shareholders and provide each business unit with the flexibility to pursue independent growth strategies in the competitive automobile sector

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