Tata Motors Demerger—What happens to your shares after the split?

Tata Motors Demerger: Tata Motors shares will be in focus today (October 14) as the stock trades ex-date for its long-awaited demerger. For shareholders, this marks an important transition, as they will soon hold shares in two separate listed companies instead of one.

Shareholders to get one new share for every existing share

Investors holding Tata Motors shares as of today’s record date will receive one share of TML Commercial Vehicles Limited (TMLCV) for every one share of Tata Motors they currently own. Both shares will have a face value of Rs 2 each.

Add Zee Business as a Preferred Source

That means if an investor holds 100 shares of Tata Motors, they will be allotted 100 shares of TMLCV, the newly formed commercial vehicle company.

Two focused businesses after the split

After the demerger, Tata Motors will operate as two distinct listed entities:

- TML Commercial Vehicles Limited (TMLCV): Will manage the commercial vehicle business.

- Tata Motors Passenger Vehicles Limited (TMPV): Will handle the passenger vehicle business, including EVs and Jaguar Land Rover (JLR).

This separation aims to give each business greater operational focus, flexibility and potential for value unlocking.

Special trading session to decide post-demerger price

A special pre-open trading session will be held between 9 AM and 10 AM on NSE and BSE to determine the price adjustment after the demerger. Regular trading will begin at 10 AM. The special session will help the exchanges discover the new share price of Tata Motors after the separation.

When will the new shares list?

Tata Motors has said that the TMLCV shares will list on NSE and BSE, subject to regulatory approvals. The listing is expected in November 2025. Once listed, shareholders will be able to trade both Tata Motors (passenger vehicle entity) and TMLCV (commercial vehicle entity) shares separately.

What investors should know?

Record date: October 14, 2025.
Share ratio: 1:1 (one TMLCV share for every Tata Motors share).
Listing: Expected in November 2025.

Tata Motors Share Price

On Monday, ahead of the demerger, Tata Motors shares closed at Rs 664 on NSE and Rs 660.90 on BSE. All eyes are now on how the market values the two new entities once trading begins.