Tata Motors stock rallies 5%; fixes October 14 as record date for demerger

Tata Motors has fixed Oct 14 as the "Record Date" for the purpose of ascertaining the shareholders of the company who shall be allotted shares of Tata Motors Commercial Vehicles in 1:1 ratio.

Tata Motors share price today

 

Shares of Tata Motors rallied 5 per cent to ₹713.70 on the BSE in Wednesday’s intra-day trade amid heavy volumes after the Tata Group automobile company fixed October 14, 2025 as the “Record Date” for demerger.

 

At 01:51 PM; Tata Motors was quoting 4.8 per cent higher at ₹712.90, as compared to 0.63 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped over three-fold, with a combined 21.54 million equity shares of the company changing hands on the NSE and BSE.

 

Tata Motors fixes October 14, 2025 as the “Record Date” for demerger

 

Tata Motors today informed that the company fixed Tuesday, October 14, 2025 as the “Record Date” for the purpose of ascertaining the shareholders of the company who shall be issued and allotted 1 share of Tata Motors Commercial Vehicles (TMLCV), for every 1 share of the company.

 

The said equity shares to be allotted by TMLCV are proposed to be listed with BSE and the National Stock Exchange of India Limited (NSE), subject to necessary regulatory approvals, Tata Motors said.

 

Tata Motors Board at its meeting held on August 1, 2024 approved the demerger of the company’s commercial vehicles (CV) business from Tata Motors to TMLCV, and merger of Tata Motors Passenger Vehicles (TMPV) undertaking the passenger vehicles (PV) business with Tata Motors.

 

TMPV is well-positioned to capitalise on this shift, with a robust pipeline of exciting product launches across both electric vehicle (EV) and Internal Combustion Engine (ICE) segments.

 

“The demerger marks a pivotal transformation: forming two independent, publicly listed companies — one dedicated to personal mobility, including Passenger Vehicles and Jaguar Land Rover (JLR), and the other focused on commercial mobility solutions. This move enables each entity to pursue distinct strategies, drive purposeful innovation, and respond swiftly to evolving market dynamics,” Tata Motors said in its FY25 annual report.  ALSO READ | Why Tata Motors split CV and PV arms: Here's what the filings reveal 

Brokerages view on Tata Motors

 

After the completion of all formalities, its PV entity is likely to get listed first, followed by the CV entity. At JLR, the cyber incident has disrupted production for most of September 2025, and hence it has lined up funding lines to ensure that sufficient working capital is available at all times. 

 

While JLR has now indicated a phased production start, it is likely to take some time for production to return to normalcy. Nonetheless, JLR is facing several headwinds, which include: 1) tariff-led slowdown for exports to the US; 2) demand weakness in key regions like Europe and China; and 3) rising VME, warranty and emission costs, analysts at Motilal Oswal Financial Services said. For the lack of any triggers, the brokerage firm reiterates Neutral rating on Tata Motors.

 

On the CV side, the management expects GST rate rationalisation to benefit smaller CV segments like SCVs and ILCVs, where more buyers don’t claim input tax credit (ITC). It projects double-digit CV growth in 2HFY26, aided by festive demand and GST rationalisation. On the PV front, festive season bookings have surged 25–30 per cent YoY, driven by GST cuts, leading to strong demand. Tata Motors has seven new launches planned in the next 12 months, including ICE and EV models, with hybrids under consideration based on market demand, the brokerage firm JM Financial Institutional Securities said.

 

Meanwhile, from FY29, OEMs would need incremental 2-3 per cent EV exposure every year. This is where the targets would incrementally become challenging for M&M and Hyundai while Maruti Suzuki should still have some headroom. Tata seems the best placed due to an already higher EV mix, according to HSBC Global Investment Research.