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The company’s commercial vehicle division will be spun off into TML Commercial Vehicles Limited (TMLCV).
Today (14 October) is the record date for the demerger of Tata Motors. That means, after today, the company’s shares will trade separately from the commercial vehicle (CV) business. The demerger has come into effect from 1 October 2025. There will be 3 major changes under the demerger plan…
- The company’s commercial vehicle division will be spun off into TML Commercial Vehicles Limited (TMLCV).
- The passenger vehicle business will remain with Tata Motors, which will be renamed Tata Motors Passenger Vehicles Limited.
- Shares of TML Commercial Vehicles Ltd (TMLCV) are expected to be listed on BSE and NSE in November.
Is 40% decline in Tata Motors stock a fall?
Shares of Tata Motors today fell by more than 40% from the closing price of Monday, October 13. Because now the old consolidated stock of Tata Motors has been exhausted. The price you see is the updated price of Tata Motors Passenger Vehicle (PV) share after the demerger.
This is not a fall. If the company has been separated then the shares have been divided, hence it is less visible. Investors will get equal shares of Tata Motors Commercial Vehicle (CV). After adding both, your investment will be the same as you had made earlier.
Nomura fixed equal price of both the companies?
Brokerage firm Nomura has divided the value of Tata Motors after the demerger into two almost equal parts – Passenger Vehicle (PV) and Commercial Vehicle (CV). Nomura has set a target price of Rs 367 per share for the PV division and Rs 365 per share for the CV division.
Understand Tata Motors demerger in questions and answers…
1. What is the demerger of Tata Motors?
answer: Tata Motors has divided its business into two parts. One part will be of commercial vehicles (vehicles like trucks, buses), which will go to a new company named TML Commercial Vehicles Limited (TMLCV). The second part will be of passenger vehicles (cars, SUVs), which will remain with Tata Motors, but its name will be changed to Tata Motors Passenger Vehicles Limited.
2. What is the record date of demerger and what does it mean?
answer: The record date is today i.e. 14 October 2025. That is, those who are shareholders of Tata Motors today will get shares of the new company TMLCV. This date decides who is eligible for demerger.
3. What will be the benefit to shareholders?
answer: Shareholders will get shares in 1:1 ratio. Meaning, if you hold 1 share of Tata Motors (face value Rs 2), you will also get 1 share of TMLCV (face value Rs 2). Shares of both the companies will trade on separate stock exchanges (BSE and NSE). TMLCV shares are expected to be listed in November 2025.
4. How will the share price be decided?
answer: On October 14, Tata Motors shares are trading separately from the commercial vehicle business (ex-CV). The share price of the new company TMLCV will be determined by the difference between the closing price of Tata Motors on October 13 and the opening price decided in the special pre-open session on October 14 between 9:00 am to 10:00 am.
5. When is this demerger effective and what is the next step?
answer: The demerger has come into effect from 1 October 2025. Now TMLCV shares will be listed on BSE and NSE in November 2025. This will give shareholders an opportunity to invest separately in both the companies (passenger and commercial vehicles), which can increase their value and growth potential.
Girish Wagh will lead the commercial vehicle company
Girish Wagh will lead the commercial vehicle company formed after the demerger. Earlier on Friday (September 26), the company had announced several major changes in its top leadership. The company appointed Shailesh Chandra as the new MD and CEO. At the same time, the group’s current Chief Financial Officer (CFO) PB Balaji will be the new CEO of JLR Automotive. Both the officers have assumed responsibility from today itself.
PB Balaji has resigned and will step down on November 17. Following PB’s departure, Dhiman Gupta has been appointed as the new CFO of Tata Motors, effective from November 17. The company has given information about this change in management in its exchange filing today i.e. on Friday, September 26. Read the full news…
Tata Motors’ profit declines by 30% to ₹3,924 crore
Tata Motors made a net profit (Consolidated Net Profit) of Rs 3,924 crore in the first quarter of the financial year 2025-26. This is 30% less on annual basis. The company’s profit in the same quarter a year ago was Rs 5,643 crore.
The company’s revenue from operations in the April-June quarter stood at Rs 1.04 lakh crore. Tata Motors had generated revenue of Rs 1.07 lakh crore in the same quarter a year ago. It has decreased by 2.51% on annual basis.
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The company has taken this decision after the approval of change in GST rates. On September 3, the GST Council reduced the tax on small cars from 28% to 18%.
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