Tata Motors Demerger: Key Dates, Share Split, and What Investors Should Know

Tata Motors is in the final stage of splitting its business into two separate units — Commercial Vehicles (CV) and Passenger Vehicles (PV). Here’s what you need to know.

Effective Date

The demerger will officially take effect from October 1, 2025, as per Tata Motors’ latest regulatory filing. This comes after the National Company Law Tribunal (NCLT) wrapped up its final hearing and reserved its order.

Completion Timeline

The company aims to finish all operational work within the second quarter of FY26, meaning the process should be done by the end of this quarter.

Two Separate Listed Companies

• The CV business and related investments will be moved to a new company named TML Commercial Vehicles Limited (later to be renamed Tata Motors Limited).
  
   
• The PV unit, which includes passenger cars, electric vehicles, and Jaguar Land Rover (JLR), will stay in the existing listed company, also named Tata Motors.

1:1 Share Split Ratio

For every share of Tata Motors owned, investors will get one share in the new CV company. Both firms will be listed separately on NSE and BSE, giving investors the flexibility to trade them independently.

Record Date

The record date to decide which shareholders get shares in the new CV entity will be announced closer to the completion date. After that, Tata Motors shares will trade ex-demerger.

Also Read: Independence Day 2025: Here is a List of Key Economic Developments in India!

Tata Motors Share Price Movement

On August 13, 2025, Tata Motors share price (NSE: TATAMOTORS) closed at ₹663.30, up ₹9.20 or 1.41% from the previous session. The stock opened at ₹657.20, touched a high of ₹667.00, and dipped to a low of ₹656.65 during the day. The company holds a market capitalisation of ₹2.44 lakh crore, with a P/E ratio of 9.32 and a dividend yield of 0.90%. Over the past 52 weeks, the share has traded between ₹535.75 and ₹1,142.00. Tata Motors also pays a quarterly dividend of ₹1.49 per share.

Conclusion

The Tata Motors demerger marks a significant step in unlocking value for shareholders. With separate listings and focused strategies, investors will have clearer opportunities to tap into the growth of each business segment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.