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The share entitlement ratio will be 1:1, meaning Tata Motors’ shareholders will hold the same proportion in both companies, keeping overall ownership unchanged. | Image: Bloomberg
4 min read Last Updated : Oct 02 2025 | 7:55 AM IST
The demerger of Tata Motors’ commercial and passenger vehicle segments — taking effect on October 1 — may lead to increased stock volatility in the near term, according to analysts.
On Wednesday, the Tata Motors stock was up 5.54 per cent on the BSE, ending at ₹718.15.
With this move, two separate listed entities will be created.
The commercial-vehicle (CV) business will move to Tata Motors Commercial Vehicles (TMLCV) while the passenger-vehicle (PV) business, including the electric-vehicle (EV) and JLR businesses, will remain with Tata Motors.
“This demerger will help