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Azeem Khan

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  • Published: Oct 08 2025 04:15 PM
  • Last Updated: Oct 08 2025 04:15 PM

Tata Motors sets October 14, 2025, as demerger record date. Eligible shareholders get 1:1 shares. Here’s how it impacts investors.



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Tata Motors has communicated to the market the date concerning the new share record date for the disbanding of the organization structure. This includes the demerger of the organization into two parts which takes place on the demerger date of 14 October 2025. This date has also been classified as the record date for shareholders.

How Does Demerger Work for Tata Motors?

For Tata Motors shareholders, on the demerger date of October 14, 2025, the shareholders of record will automatically procure new issued shares of TML Commercial Vehicles Ltd (TMLCV) (as of the demerger date of October 14, 2025). This takes place on the basis of 1:1 as stated on the demerger documentation. This means for every Tata Motors share you are holding, you will be issued one TMLCV share with a face value of ₹2 which means all of the equity balances with the new stake in the commercial vehicle business.

What Changes for Investors?

After the demerger, two companies will list separately for the first time:

  • Tata Motors Passenger Vehicles: Will manage passenger cars, electric vehicles, and the JLR brand.

  • TML Commercial Vehicles: Will focus on trucks and the commercial fleet business.

On the record date, eligible shareholders will see new shares credited to their demat accounts. The total value of holdings remains unchanged at first, but each stock may move independently as each business grows and reacts to the market.

What About NCDs and Debentures?

Tata Motors has also fixed October 10, 2025, to identify holders of specific non-convertible debentures (NCDs) for transfer to TMLCV.

Expert Tips for Tata Motors Shareholders

  • “Hold on to your Tata Motors shares until the record date for maximum benefit,” say analysts. Those eligible will own both new entities after the split.

  • Short-term price movement is minor, but long-term investors could gain strategic value by accessing both businesses.

  • Do not create new leveraged futures or margin trades in Tata Motors until after demerger trading resumes.

How Will This Impact the Market?

Tata Motors shares have traded below ₹700 over the past couple of sessions, as investors navigate the demerger and position their portfolios for the new company. Volumes have remained strong, suggesting significant interest around the demerger and what it means for Tata Motor’s product portfolio.

What Happens After Demerger?

Both stocks will be listed separately on NSE and BSE as soon as regulatory approvals are confirmed. Investors should review their portfolios and consider their strategies for each business area after the listing.

 

Disclaimer: The information in this article is meant for informational purposes only. Jobaaj.com does not offer investment advice. Investors are advised to conduct their own due diligence and consult certified financial experts before making investment decisions.

FAQ

The official record date is October 14, 2025. This is when shareholder holdings are determined for the share split.

Eligible shareholders get one TMLCV share for every Tata Motors share held as of the record date (1:1 ratio).

You will own both Tata Motors Passenger Vehicles and Tata Motors Commercial Vehicles as two separate listed companies.

Simply ensure your Tata Motors shares are in your demat account by October 14, 2025, to receive the new shares automatically.

Share prices adjust on the ex-date to reflect the new structure, but your total investment value remains the same initially.

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