Tata Motors has officially completed its corporate demerger, separating its Commercial Vehicles (CV) division from the Passenger Vehicle (PV), JLR, and EV business to unlock value and focus operations.
As part of the restructuring, shareholders will receive one share of the new Commercial Vehicles company for every share held in Tata Motors Limited, as of the record date of October 14, 2025.
Key Demerger Details
| Particulars | Details |
|---|---|
| Demerger Ratio | 1:1 (One share of new CV entity for every one share held in Tata Motors) |
| Record Date | October 14, 2025 |
| Valuation of CV Business | ₹260.75 per share (implied value based on price adjustment) |
| Post-Demerger PV Share Price | Around ₹400 after 40% technical correction |
| Expected Listing for CV Arm (TMLCV) | November 2025 |
| Entities Post-Split | Tata Motors Passenger Vehicles Ltd. (TMPVL) and Tata Motors Commercial Vehicles Ltd. (TMLCV) |
What Happened to the Share Price?
After the demerger took effect, Tata Motors shares dropped nearly 40% to around ₹400 — not due to business loss, but due to the technical adjustment reflecting the removal of the CV business’s value from the main stock.
The CV division’s standalone value is estimated at ₹260.75 per share, based on the pre-merger price of around ₹660.
Despite the apparent drop, investors continue to hold the full combined value across both companies once the CV shares are credited.
Shareholder Impact & Next Steps
| Aspect | Details |
|---|---|
| Entitlement | 1:1 share allotment — investors receive equal shares in the new CV entity |
| Share Credit Timeline | Shares will be credited to demat accounts post-approval within 45–60 days |
| New Entity Name | Tata Motors Commercial Vehicles Ltd. (TMLCV) |
| Trading Availability | CV arm shares to be listed separately on BSE & NSE (expected November 2025) |
| Derivatives (F&O) | Available only after listing approval |
| Outlook | Analysts expect long-term growth potential in both PV (EV + JLR) and CV arms amid India’s strong infra demand |
Analyst Views
Analysts believe this demerger unlocks shareholder value, helping each business pursue independent strategies:
- The PV & EV division can focus on electric transition and JLR profitability.
- The CV business benefits from infrastructure push and fleet modernisation.
According to Economic Times, the truck and bus business has been valued at ₹260.75 per share, while Livemint reports positive long-term sentiment from brokerage houses following the split.
What’s Next for Investors
The new Tata Motors Commercial Vehicles Ltd. (TMLCV) is expected to list on stock exchanges by November 2025, pending final approvals. Once listed, investors will be able to trade both TMPVL and TMLCV independently.
Experts suggest long-term investors hold both shares, as both divisions target separate high-growth markets — EV & luxury and infrastructure-driven logistics, respectively.
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