Tata Motors is set to complete its long-anticipated demerger this week, with October 14, 2025, marked as the record date. Today, October 13, 2025, is the last day for investors to buy Tata Motors shares to be eligible for the demerger. This restructuring will split the company into two distinct listed entities, focusing on commercial and passenger vehicle segments.

Key Points of the Demerger:

• Demerger Effective Date: The demerger officially took effect on October 1, 2025.
• Two Separate Entities: Tata Motors will be reorganized into two separate listed companies:
  • TMLCV Ltd: This new entity will house the Commercial Vehicle (CV) business, including trucks, buses, and light commercial vehicles. It will be renamed Tata Motors Limited.
  • Tata Motors Ltd (Existing): The current entity will retain the Passenger Vehicle (PV), Electric Vehicle (EV), and Jaguar Land Rover (JLR) businesses. It will be renamed Tata Motors Passenger Vehicles Limited.
• Share Entitlement Ratio: Shareholders will receive one share of TMLCV for every one share of Tata Motors held on the record date. This is a 1:1 share-swap ratio.
• NCD Transfer: Approximately ₹2,300 crore worth of non-convertible debentures (NCDs) and associated liabilities will be transferred to the new company, TMLCV.
• Listing: Both Tata Motors and TMLCV are expected to be listed on the NSE and BSE in early November 2025, pending regulatory approvals.
• Special Pre-Open Session: The NSE will conduct a special pre-open session on October 14, 2025, from 9 a.m. to 10 a.m. to allow investors to adjust their positions before the stock split.

What This Means for Investors:

• Eligibility: Investors holding Tata Motors shares on or before the record date, October 14, 2025, will be eligible to receive shares of TMLCV.
• Automatic Transfer: If you hold one fully paid Tata Motors share by the record date, you will automatically receive one share of the new commercial vehicle company. No extra payment will be required. The transfer will appear in your account after the corporate actions are processed.
• Trading Considerations: Monday, October 13, 2025, is the last day to trade Tata Motors shares as a consolidated entity before the record date. The stock will trade ex-demerger after this date, meaning investors buying after today will not be entitled to new shares under the new scheme.
• Share Price Adjustment: Prices may adjust to reflect the carved-out value of the passenger vehicle business.
• Focus and Value Unlocking: The restructuring aims to streamline operations, improve capital allocation, and provide investors with clearer visibility into the distinct performance drivers of the passenger and commercial vehicle segments. The move is expected to enhance operational efficiency and unlock long-term shareholder value.
• Independent Operations: Once completed, both Tata Motors and TMLCV will operate as independent listed entities, each with separate management teams, financial structures, and strategic growth plans.

Why the Demerger?

The Tata Motors demerger seeks to separate businesses with distinct growth cycles and capital requirements. The commercial vehicle arm will concentrate on domestic market recovery, electric fleet expansion, and infrastructure-driven demand. The passenger vehicle and JLR division will sharpen its focus on premium mobility, electrification, and international growth. This split enables both companies to raise capital independently, pursue targeted innovation, and offer investors clearer visibility into each business's performance metrics.