Tata Motors demerger: Key things every investors should know before listing

Tata Motors Limited (TML), the flagship automobile arm of the Tata Group, has entered a new phase of its corporate journey with the completion of the long-awaited demerger of its passenger vehicle (PV) and commercial vehicle (CV) businesses. The restructuring — among the most significant corporate separations in recent Indian market history — took effect from October 1, 2025, following approvals from the National Company Law Tribunal (NCLT).

 

As investors await the D-Street debut of the demerged entity, here are the key details they should know:

Two distinct listed entities

Under the approved Composite Scheme of Arrangement, Tata Motors’ commercial vehicle business — comprising trucks, buses, and associated operations has been transferred to a newly formed entity, TML Commercial Vehicles Limited (TMLCV).

 

 

The passenger vehicle operations, which include the domestic car segment, the fast-growing electric vehicle (EV) division, and the luxury brand Jaguar Land Rover (JLR), will remain under the existing listed company, the company said in its exchange filing.

 

Pursuant to the Scheme, the existing Tata Motors Limited has been renamed Tata Motors Passenger Vehicles Limited (TMPVL) with effect from October 13, 2025. In parallel, TML Commercial Vehicles Limited has adopted the name Tata Motors Limited as per its fresh Certificate of Incorporation dated October 29, 2025.  ALSO READ | Explainer: Tata Motors demerger and what it means for shareholders

Effective and record dates

The According to the exchange filing, the demerger scheme became effective on October 1, 2025, with July 1, 2025, set as the appointed date. The company has fixed Tuesday, October 14, 2025, as the record date to determine eligible shareholders entitled to receive shares in the newly formed entity.   As per the share entitlement ratio, shareholders of Tata Motors Limited as of the record date will receive one equity share of ₹2 each in TMLCV for every one equity share of ₹2 each held in the parent company.

Listing process and price adjustment

Following the record date, the share price of Tata Motors was adjusted on the stock exchanges to reflect the demerger of the commercial vehicles business. Once the list of eligible shareholders is finalised, shares in TMLCV will be allotted and subsequently listed on the BSE and NSE.

 

During the interim period between share allotment and listing, the equity shares of TMLCV will not be available for trading. The company expects the listing and trading permissions to be completed within 45–60 days from the date of submission of the requisite applications to the exchanges.  ALSO READ | Nomura splits Tata Motors' post-demerger targets between PV and CV biz

Post-demerger structure

Post restructuring, Tata Motors Passenger Vehicles Limited will continue as a listed company housing the passenger vehicle, EV, and JLR businesses. The newly renamed Tata Motors Limited will hold the commercial vehicles business, providing a clear demarcation of operations within the group.

 

Guidance on the cost of acquisition of shares in both entities will be communicated to shareholders in due course, the company said in its exchange filing.