The company has fixed October 14, 2025, as the record date to determine eligible shareholders who will receive one share of TML Commercial Vehicles Ltd with a face value of ₹2 each for every one share held in Tata Motors Ltd of the same face value, as per the share entitlement ratio under the scheme. Shares of Tata Motors Ltd ended at ₹684.40, up by ₹2.85, or 0.42%, on the BSE.

Tata Motors demerger becomes effective from October 1; record date set for October 14

CNBCTV18·author

Published Oct 09, 2025 | 11:39 AM GMT-04

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Homegrown auto major Tata Motors Ltd on Thursday (October 9) announced that its Composite Scheme of Arrangement involving TML Commercial Vehicles Ltd (TMLCV) and Tata Motors Passenger Vehicles Ltd (TMPV) has become effective from October 1, 2025, following approval from the National Company Law Tribunal, Mumbai Bench, through orders dated August 25 and September 10, 2025.

The company has fixed October 14, 2025, as the record date to determine eligible shareholders who will receive one share of TML Commercial Vehicles Ltd with a face value of ₹2 each for every one share held in Tata Motors Ltd of the same face value, as per the share entitlement ratio under the scheme.

Under the arrangement, the commercial vehicles business undertaking of Tata Motors has been demerged into TMLCV, while Tata Motors Passenger Vehicles Ltd has been amalgamated with Tata Motors Ltd. The appointed date for the scheme is July 1, 2025.

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Tata Motors will continue as a listed entity and will change its name to Tata Motors Passenger Vehicles Ltd, carrying on the passenger vehicles business, including its investments in the electric vehicle and Jaguar Land Rover (JLR) businesses. TML Commercial Vehicles Ltd will be renamed Tata Motors Ltd and will operate the commercial vehicles business.

On the record date, the share price of Tata Motors will be adjusted to reflect the demerger of the commercial vehicles business through a price discovery mechanism of the stock exchanges. After finalising the list of eligible shareholders, the shares in TMLCV will be allotted and subsequently listed on the BSE and NSE.

During the period between allotment and listing, the shares of TMLCV will not be available for trading. The process of obtaining listing and trading permission is expected to take 45 to 60 days from the date of filing the necessary applications with the stock exchanges.

Also Read: Tata Motors JLR to begin phased restart of production from October 8 after cyberattack

Guidance on the cost of acquisition of shares in Tata Motors and TMLCV will be communicated in due course. The company said all relevant details and documents will be shared with shareholders via email and made available on the websites of Tata Motors, TMLCV, and the stock exchanges.

Shares of Tata Motors Ltd ended at ₹684.40, up by ₹2.85, or 0.42%, on the BSE.

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