Tata Motors set Tuesday, 14 October 2025, as the record date to determine shareholder eligibility for the demerger. From this date onward, Tata Motors shares will trade ex-commercial vehicle (CV) business. The demerger for Tata Motors took effect on 1 October 2025.
Following the record date on Tuesday, here are key details every shareholder should know —
Under the approved demerger plan, Tata Motors’ commercial vehicle division will be carved out into a new entity named TML Commercial Vehicles Limited (TMLCV). Meanwhile, the passenger vehicle operations will stay with Tata Motors, which will be renamed Tata Motors Passenger Vehicles Limited.
Tata Motors' demerger into its commercial vehicle and passenger vehicle divisions came into effect on 1 October.
Tata Motors' demerger has a share entitlement ratio of 1:1. This means shareholders will receive one fully paid-up share of ₹2 in Tata Motors TMLCV for each share they hold in Tata Motors as of the record date.
The listing date for Tata Motors Commercial Vehicle Ltd, the demerged entity, remains undecided so far. However, the auto major has indicated that the listing could take up to 60 days, possibly by mid-November.
The stock is expected to trade between ₹320 and ₹470 following listing in November. The domestic CV industry is anticipated to start recovering in the second half of FY26, supported by factors such as the GST rate reduction on CVs from 28% to 18%, replacement demand, and a rise in activity within the infrastructure, construction, and logistics sectors. The integration of Iveco Group NV, most likely in FY27, will expose the company to the global CV cycle, Mint reported earlier, citing SBI Securities.
Tata Motors demerged PV entity shares ended at ₹395.50, down 0.88% from the adjusted price of ₹403.66. The automaker's stock reflected a 40% fall during the opening hours on Tuesday from its last closing price. On BSE, Tata Motors shares opened at ₹399, down from Monday's close of ₹660.90.
August 2024 – Tata Motors’ Board approves the demerger proposal
March 2025 – NCLT orders a shareholder vote
March 28, 2025 - The cutoff date for voting eligibility
May 6, 2025 – Shareholders approve the demerger
October 1, 2025 – Demerger becomes effective; Commercial Vehicle business is spun off into TML Commercial Vehicles Ltd (TMLCV)
October 10, 2025 – Record date for transferring non-convertible debentures to TMLCV
October 14, 2025 – Shareholder record date. Investors holding Tata Motors shares on this date received 1 TMLCV share for every 1 Tata Motors share.
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