Tata Motors Demerger Highlights: Tata Motors PV shares end flat; Commercial Vehicle entity to list in November

After the demerger, the PV entity will be renamed as Tata Motors Passenger Vehicles Ltd. and house all the car-making businesses including electric cars and JLR. The newly carved out entity — India’s biggest maker of trucks and buses — will then be called Tata Motors Ltd.

The stock is likely to trade between ₹320-470 post listing in November. The domestic CV industry is likely to start recovering in 2HFY26 on back of tailwinds such as GST rate reduction on CVs from 28% to 18%, replacement demand and pickup in 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.

Views by SBI Securities

Tata Motors demerged PV entity shares ended at ₹395.50, down 0.88% from the adjusted price of ₹403.66.

Brokerage Nuvama Wealth Management told clients in a note Monday that it valued Tata’s commercial vehicle business at 274 rupees ($3.09) apiece or 1 trillion rupees.

Tata Motors Demerger LIVE: Tata Motors PV shares traded flat amid volatility after the special pre-open price discovery session. The stock was down 0.29% at ₹397.85 from its discovered price on the BSE.

Tata Motors Demerger LIVE: Market expert Avinash Gorakshakar sees Tata Motors demerger as a structural positive, giving both divisions independence to pursue growth and partnerships more efficiently. While short-term volatility is likely as markets adjust to the new structure, the PV + JLR business, in his view, has a strong medium- to long-term opportunity.

“Tata Motors demerger has resulted in strategic value unlocking, and I believe it helped improve the company’s positioning to capture growth across both domestic and global automotive markets,” Gorakshakar said.

Tata Motors Demerger LIVE: Tata Motors’ British luxury car subsidiary JLR earlier this year was grappling with US tariffs on the UK-made vehicles. In recent weeks, it has been hit by a cyberattack that forced it to shut down factories worldwide, requiring an emergency government bailout. Last week, JLR restarted production at some sites.

Tata Motors Demerger LIVE: The listing date of Tata Motors Commercial Vehicle Ltd, the demerged entity, has not been determined yet. However, the auto major had said that the listing should take as long as 60 days, or by mid-November.

According to Tata Motors’ regulatory filing on October 9, during the period from the date of allotment of shares by TMLCV upto the date of listing on BSE & NSE thereof, the shares of TMLCV shall not be available for trading on the Stock Exchanges. The process of obtaining Listing and Trading permission generally takes 45-60 days from the date of filling necessary application with Stock Exchanges.

Tata Motors Demerger LIVE: Tata Motors demerger aims to unlock value, provide sharper strategic focus, and enhance agility for both businesses. As far as Tata Motors share price is concerned, market expert Avinash Gorakshakar believes that over the medium-term, the Jaguar Land Rover (JLR) business will get a premium multiple as it is a major part of the Tata Motors consolidated business and where margins and growth opportunity is large. He said that the domestic CV and Passenger Vehicle (PV) businesses also enjoy strong scalability potential and can also trade at reasonably good valuations.

Tata Motors Demerger LIVE: Tata Motors share price may show a drop of over 40% from previous closing price. Tata Motors consolidated stock now ceases to exist. This is the updated price of the Tata Motors Passenger Vehicle shares after the demerger. Investors will receive an equal amount of Tata Motors Commercial Vehicle shares, when it gets listed on the stock exchanges.

Tata Motors Demerger LIVE: Tata Motors PV shares rebounded from the day’s low after the special pre-open price discovery session. The stock rallied as much as 5.62% from its discovered price to ₹421.45 apiece on the BSE.

Nomura has divided Tata Motors’ valuation after the demerger nearly evenly between its Passenger Vehicle (PV) and Commercial Vehicle (CV) sectors. In light of the demerger taking effect on 1 October 2025, the brokerage has established a target price of ₹367 per share for the PV division and ₹365 per share for the CV division.

Tata Motors Demerger LIVE: Tata Motors’ special price discovery session valued its Passenger Vehicle (PV) unit at around ₹400 per share. I believe it reflects strong fundamentals. The split will unlock value by providing sharper focus and transparency between the PV + JLR and Commercial Vehicle (CV) businesses. I expect the PV arm, which houses Jaguar Land Rover (JLR), to benefit from improving operational clarity, better capital allocation, and rising demand in the domestic passenger and electric vehicle segments. JLR’s recovery after recent disruptions and its margin normalization prospects further strengthen the growth outlook, said market expert Avinash Gorakshakar.

Overall, I see the demerger as a structural positive, giving both divisions independence to pursue growth and partnerships more efficiently, he added.

While short-term volatility is likely as markets adjust to the new structure, the PV + JLR business, in my view, has a strong medium- to long-term opportunity. Tata Motors demerger has resulted in strategic value unlocking, and I believe it helped improve the company’s positioning to capture growth across both domestic and global automotive markets, Gorakshakar said.

Tata Motors Demerger LIVE: Tata Motors demerger share entitlement ratio at 1:1, which means shareholders will get one fully paid-up share of ₹2 in Tata Motors Commercial Vehicles Limited (TMLCV) for every share held in Tata Motors as on the record date today.

Tata Motors Demerger LIVE: Tata Motors Passenger Vehicles share price declined over 5% after a special pre-open price discovery session. The shares of the newly named listed entity of Tata Motors - Tata Motors Passenger Vehicles - were valued at ₹400 per share. The stock fell as much as 5.53% to ₹376.90 apiece on the BSE.

Tata Motors Demerger LIVE: On BSE, Tata Motors Passenger Vehicle share price opens at ₹399 apiece.

Tata Motors Demerger LIVE: Tata Motors Passenger Vehicle share price settles in pre-open session, to list at ₹400 per share on NSE.

Tata Motors Demerger LIVE: Tata Motors ex-CV traded around ₹399 in early trade on BSE. However, this is not the final price and is subject to change during the course of the special pre-open session.

Tata Motors Demerger LIVE: Brokerage firm Zerodha has shared an update on trading in Tata Motors shares today amid its demerger record date.

Tata Motors Demerger LIVE: Here’s a look at Tata Motors demerger timeline

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 will receive 1 TMLCV share for every 1 Tata Motors share

Early November 2025 –

➤ TMLCV to be listed on BSE and NSE

➤ Existing Tata Motors (passenger vehicles + JLR business) to be renamed Tata Motors Passenger Vehicles Ltd (TMPVL)

Tata Motors Demerger LIVE: The price of Tata Motors’ ex-CV entity will be determined based on the difference between the closing price of Tata Motors on Monday, October 13, and the opening price of the listed entity, as discovered during the special pre-open session held between 9:00 a.m. and 10:00 a.m.

Tata Motors Demerger LIVE: Under the demerger scheme, Tata Motors’ commercial vehicle division will be transferred to a new entity, TML Commercial Vehicles Limited (TMLCV), while the passenger vehicle business will continue under Tata Motors, which will be renamed Tata Motors Passenger Vehicles Limited. Shares of TMLCV are proposed to be listed on both the BSE and the National Stock Exchange of India (NSE) in November.

Tata Motors Demerger LIVE: Tata Motors demerger record date is today, October 14, 2025. From this date, Tata Motors shares will trade ex-commercial vehicle (CV) business