Tata Motors is set to list its commercial vehicle (CV) arm, Tata Motors Commercial Vehicles Ltd (TMLCV), on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) tomorrow, November 12, 2025. This listing marks the completion of a strategic demerger, a move aimed at unlocking value and fostering focused growth for its distinct business segments.
Demerger Details
The demerger, effective October 1, 2025, has split Tata Motors into two separate entities:
- Tata Motors Commercial Vehicles Ltd (TMLCV): This entity will focus exclusively on the commercial vehicles portfolio, managing trucks, buses, and small commercial vehicles. The CV business retains the Tata Motors name.
- Tata Motors Passenger Vehicles Ltd (TMPV): This entity will handle passenger vehicles, electric vehicles (EVs), and Jaguar Land Rover (JLR) operations. TMPV has already begun trading as a separate entity since October 14.
What it Means for Shareholders
Under the approved Composite Scheme of Arrangement, Tata Motors shareholders received one equity share of TMLCV for every one equity share of Tata Motors held, as of the record date, October 14, 2025. This 1:1 entitlement ensures that overall ownership remains unchanged, now split between two tradable entities. The shares were credited to investors' Demat accounts on October 16, 2025, but have been frozen until the listing.
Tata Motors has clarified that all shareholders will maintain identical shareholding in both listed entities. The demerger does not involve any cash payment or surrender of shares.
Strategic Rationale
The primary goal of the demerger is to enable each business to pursue a more focused strategy. Tata Sons Chairman N. Chandrasekaran described the demerger as a “logical progression” that will help the businesses capitalize on market opportunities with greater focus and agility, leading to enhanced value for shareholders and better growth prospects for employees.
The CV and PV segments operate in different markets, with distinct customer bases, business cycles, and capital needs. The demerger is expected to unlock value for shareholders through more transparent financial reporting and independent valuation of each business. With separate management teams and boards, each company can make faster, more tailored decisions to respond to market demands.
Market Impact and Valuation
The listing of TMLCV is expected to be a significant value-unlocking event. Market analysts estimate a listing price range of ₹260.00 - ₹300.00 per share. Following the record date adjustment, Tata Motors' pre-demerger stock price of Rs 660.75 was split between the two entities.
Brokerages have offered varying valuations for the two entities. Nomura has pegged fair values for TMPV and TMLCV at Rs 367 and Rs 365 respectively, while SBI Securities sees the CV arm's value between Rs 320-470 per share, factoring in growth from the planned acquisition of Italy's Iveco Group’s commercial vehicle operations.
Trading Details
TMLCV will trade under the symbol 'TATAMOTORSCV'. The BSE notice on November 10, 2025, stated that the equity shares of Tata Motors Limited (formerly known as TML Commercial Vehicles Limited) will be listed and admitted to dealings on the exchange in the list of T Group of Securities. The stock will remain in the trade-for-trade segment for the first 10 sessions, a standard listing rule for new or relisted companies.
Additional Developments
Tata Motors has received conditional approval from Italy for its proposed €3.8 billion acquisition of Iveco, a Turin-based truck manufacturer. The deal is expected to close in 2026.
