Tata Motors Demerger: What It Means for PV Shareholders and TML Commercial Vehicles Limited Share Price?

Tata Motors Limited began trading ex-demerger from October 14, 2025, marking a major restructuring milestone. The separation of the Commercial Vehicle (CV) business from the Passenger Vehicle (PV) division aims to enhance operational independence and unlock shareholder value. Following this, the company’s share now represents only the PV business, adjusted for the carve-out of the CV segment.

Share Allotment and Record Date Details

The record date for the Tata Motors demerger was October 14, 2025. Under the approved scheme, shareholders received one share of Tata Motors Commercial Vehicles Limited (TMLCV) for every one Tata Motors share held, maintaining a 1:1 entitlement ratio.

According to the company’s regulatory filing, 368.23 crore fully paid equity shares of face value ₹2 each have been allotted to eligible shareholders of TMLCV. The listing of TML Commercial Vehicles Limited share price on BSE and NSE is expected within 45–60 days after the completion of necessary filings.

Market Valuation and TML Share Price

After the demerger, Tata Motors’ Passenger Vehicle (PV) business, including Jaguar Land Rover (JLR) and the Electric Vehicle (EV) division, has been valued at ~₹1.45 lakh crore. The Commercial Vehicle (CV) arm is expected to hold a comparable valuation.

On October 14, the Tata Motors (PV) stock, now trading separately, was discovered at ₹400 per share on NSE compared to the pre-demerger close of ₹660.75. This implies a derived value of around ₹260.75 per share for the TML share price, based on the residual valuation of the demerged business.

Structure of the Two Entities

Post-demerger, shareholders now hold stakes in two independent companies:

• Tata Motors Passenger Vehicles Limited (TMPV): Encompasses the domestic passenger vehicle business, EV division, and JLR, which contributes about 87% of FY25 revenue. TMPV also holds investments in Tata Sons, Tata Steel, and Tata Technologies.
• Tata Motors Commercial Vehicles Limited (TMLCV): Includes the domestic and international CV operations, along with subsidiaries like Tata Daewoo Mobility and TML Smart City Mobility Solutions. TMLCV holds a 4.7% stake in Tata Capital through TMF Holdings and plans to integrate Iveco’s commercial vehicle business by 2026.

Tata Motors Share Price Performance

On October 16, 2025, Tata Motors share price (NSE: TATAMOTORS) opened at ₹395.45 and closed at ₹396.40, up by 1.42%. The stock price touched its day’s high at ₹400.45.

Also Read: Tata Motors Share Price in Focus as Commercial Unit to be Renamed Tata Motors Limited!

Conclusion

The Tata Motors demerger offers investors exposure to two focused businesses — the fast-growing PV and EV unit, and the established CV segment. With the upcoming TML Commercial Vehicles Limited share price listing, investors can assess each entity’s performance separately, leading to clearer valuation, transparency, and growth opportunities in India’s evolving auto market.

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