Tata Motors Demerger :- Today will be a special day for investors in Tata Motors Limited, as the company’s stock will trade as a combined entity for the last time before its demerger. The record date for this demerger is set for Tuesday, October 14th. This means that only investors holding Tata Motors shares in their demat accounts by market close on Monday will be eligible to benefit from this demerger scheme.
One Share for One Share
Tata Motors Demerger :- Under this scheme, eligible investors will receive one share for every one share in the new entity formed from Tata Motors’ commercial vehicles (CV) business. Existing shares will have a face value of ₹2 per share. The company had previously announced that this split scheme will become effective from October 1, 2025.
Share Price Adjustment and Names of New Companies
On the record date, the price of Tata Motors’ existing listed shares on the stock exchange will be determined by subtracting the portion now being separated as the commercial vehicles business. This process is called the Price Discovery Mechanism.
Following the split, the commercial vehicles business will be known as “Tata Motors Ltd. Commercial Vehicles,” while the existing company will be renamed “Tata Motors Passenger Vehicles Ltd. (TMPVL).”
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Listing Process and Trading Halt
Until the shares of the new company are allotted to investors and listed, no trading will be possible on these shares. According to Tata Motors, the process of listing the new entity and obtaining trading permission typically takes 45 to 60 days.
Why is the demerger happening?
This Tata Motors Demerger plan was proposed by Tata Motors in 2023 and has now received all regulatory approvals. Meanwhile, the company’s luxury unit, Jaguar Land Rover (JLR), is currently facing a major cyberattack. Reports suggest the damage could cost the company over 2 billion pounds, more than its entire 2025 fiscal year profit.
Recent Stock Performance
Tata Motors shares closed at ₹679.1 on Friday, down 0.3% from the previous close. The company’s stock has fallen nearly 5% in the past month.
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My name is Anaya Afrin, the founder of Seekho Smart. I built this platform to make knowledge simple, clear, and truly useful for students and readers everywhere. With over 6 years of blogging experience, I’ve learned how to turn complex topics into easy guides that inspire learning. Through my writing, I aim to share practical knowledge that not only informs but also empowers people to grow and achieve their goals.