Tata Motors Demerger Highlights: PV Shares End Flat, CV Entity Listing Expected in November

Tata Motors' demerger, which was highly awaited, took a significant step today, October 14, 2025, as the record date for the division of Passenger Vehicle (PV) and Commercial Vehicle (CV) segments was determined by the company. In accordance with the sanctioned 1:1 entitlement ratio, every shareholder on the record date today will get one share of TML Commercial Vehicles Limited for each Tata Motors share owned.

Tata Motors Demerger Overview

The demerger of Tata Motors became official on October 1, 2025, and starting today, the company's shares are no longer associated with the commercial vehicle business. Tata Motors Limited is going to change its name to Tata Motors Passenger Vehicles Limited (TMPVL), which will comprise the passenger vehicle, electric mobility, and Jaguar Land Rover (JLR) operations. On the other hand, TML Commercial Vehicles Limited will give up its old name and become Tata Motors Limited, thus taking care of all truck and bus matters.

The newly adjusted share prices were determined during a special pre-open session (9:00–10:00 AM). The PV entity opened at ₹400 on NSE and ₹399 on BSE, before closing the day slightly lower at ₹395.50 — a 0.88% drop from its adjusted price of ₹403.66.

Share Entitlement Details

Entitlement Ratio: 1:1

Record Date: October 14, 2025

Share Value: ₹2 each (fully paid-up equity shares)

Each Tata Motors shareholder will be allotted one equity share of TML Commercial Vehicles Limited for every fully paid Tata Motors share held as of the record date.

Analyst and Market Reactions

Avinash Gorakshakar, market expert, called the demerger a “structural positive”, noting it gives both divisions operational independence and flexibility to pursue strategic growth. “This move unlocks long-term value and positions Tata Motors to capture opportunities across domestic and global markets,” he said.

Brokerage houses have also released early valuations for the CV business:

• SBI Securities expects the CV stock to list between ₹320 and ₹470 per share in November.
• Nuvama Wealth Management valued the CV division at around ₹274 per share (₹1 trillion).
• Analysts expect domestic CV demand to rebound in FY26, driven by factors like GST rate cuts on commercial vehicles (from 28% to 18%), replacement demand, and renewed infrastructure growth. The integration of Iveco Group NV in FY27 could further strengthen Tata’s global footprint.

What Happens Next?

The TML Commercial Vehicles Limited listing is expected in November 2025, after which investors will be able to trade both Tata Motors PV and CV shares independently.

While short-term volatility is expected, experts believe the demerger marks the beginning of a new phase for Tata Motors — one focused on clarity, agility, and long-term value creation for shareholders.