Tata Motors shares fall 2% ahead of October 14 record date for demerger of CV biz: Here's what shareholders should know

Tata Motors demerger

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26 Aug, 2025 12:21

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The shares of Tata Motors dropped more than 2 percent on October 13. This comes a day before the record date for the stock to adjust to the firm's demerger of Commercial Vehicles business.

The stock closed at Rs 664 per share on Monday. Earlier during the day, the stock fell more than 3 percent to hit an intraday low of Rs 658.10 apiece.

Earlier this month, the company fixed October 14 (tomorrow) as the record date for determining which shareholders are eligible to receive shares in its demerged commercial vehicle business. This means that investors who held Tata Motors shares as on the record date will be eligible for the demerger scheme.

These shareholders will get one share of the demerged entity for every one share of Tata Motors they own. The company said the equity shares to be issued by TML Commercial Vehicles Ltd (TMLCV) will be listed on both BSE and NSE on October 14.

The demerger has already become effective from October 1. The stock adjustment will take place tomorrow.

About Tata Motors demerger:

In August last year, Tata Motors’ board approved the demerger of its commercial and passenger vehicle divisions into two separate listed entities in order to sharpen business focus and capitalise on future growth opportunities.

Following the demerger, the passenger vehicle arm will be renamed Tata Motors Passenger Vehicles (TMPVL), while the commercial vehicles entity will be listed in November as Tata Motors (TML).

The 1:1 demerger will create two focused entities — Tata Motors Commercial Vehicles (TMLCV) and Tata Motors Passenger Vehicles (TMPV).

Tata Motors share price history:

Tata Motors shares have extended decline for the seventh consecutive session, falling over 10 percent during the period. The stock dropped nearly 7 percent in the past one month, and over 11 percent in 2025 so far.

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