Tata Motors demerger on October 1: From share entitlement ratio to record date, key details every shareholder must know

There are only a few hours remaining before Tata Motors completes its demerger into two separate listed entities. After the restructuring, one company will oversee the commercial vehicle division, while the other will manage the passenger vehicle segment, including the electric vehicle operations and Jaguar Land Rover.

Ahead of the demerger, effective October 1, here are the key details that every shareholder must know —

What is the demerger scheme?

According to the demerger scheme, Tata Motors’ commercial vehicle division will be demerged into TML Commercial Vehicles Limited (TMLCV), while passenger vehicle operations will remain under Tata Motors, which will be renamed Tata Motors Passenger Vehicles Limited.

How many shares will shareholders get?

The Tata Motors demerger has a share entitlement ratio of 1:1, meaning shareholders will receive one fully paid-up share of ₹2 in TMLCV for each share they own in Tata Motors. The scheme also includes the transfer of non-convertible debentures valued at ₹2,300 crore to the commercial vehicle entity, which is proposed to be listed in November.

When is the record date?

Tata Motors has not announced the exact record date. However, the company announced in its analyst meeting that the record date for the demerger will be fixed for mid-October, subject to approval from the registrars.

Tata Motors share price

Tata Motors' share price was in focus on Tuesday following the demerger. The shares closed 1.18% higher at ₹680.45 after Tuesday's market session. Tata Motors shares opened at ₹672.50 on the BSE, reaching an intraday high of ₹683.50 and a low of ₹666.90.

The demerger comes into effect days after Tata Motors announced that Girish Wagh and Shailesh Chandra will head commercial vehicle and passenger vehicle entities.

The auto giant said its board has approved the appointment of Girish Wagh to the board of TML Commercial Vehicles Ltd as an Additional Director, Managing Director and CEO, effective October 1, 2025.

Shailesh Chandra will take the position of Additional Director, Managing Director, and CEO of the passenger vehicle company from October 1, 2025, onwards for a three-year term until September 30, 2028.

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