Dear Investors,
Tata Motors is splitting its business into two separate listed companies. Here’s everything you need to know as a shareholder.
The Split: What’s Happening?
One company becomes TWO:
Company 1: Tata Motors Passenger Vehicles (TMPVL)
- Passenger vehicles
- Electric vehicles (EVs)
- Jaguar Land Rover (JLR)
Company 2: Tata Motors Commercial Vehicles (TMLCV)
- Trucks
- Buses
- Commercial pickups
Both will operate independently with their own management, strategy, and listings.
What You Get: The Share Exchange
For every 1 share of Tata Motors you hold, you receive 1 share of TMLCV
Who Qualifies?
You must have owned Tata Motors shares on or before October 13, 2025
Real Example
If you own 100 Tata Motors shares:
- You keep: 100 TMPVL shares (passenger vehicles)
- You receive: 100 TMLCV shares (commercial vehicles)
- Total: 200 share positions representing both companies
The Record Date
October 14, 2025 = Record date for eligibility
October 14-30, 2025 - Demerger Shares Credit
Tata Motors Commercial Vehicles shares credited to your demat account:
- Timeline: 30-45 days from record date
- How you’ll know: CDSL will email you when shares are credited
October 14, 2025 onwards - Futures & Options
F&O Contracts Update:
- All existing F&O contracts (Oct, Nov, Dec expiry) expired on October 13
- New F&O contracts reintroduced from October 14 with revised lot size
- Reintroduction happens after the pre-open session
Key Numbers at a Glance
| Metric | Details |
|---|---|
| Share Ratio | 1:1 (you get 1 share for every 1 held) |
| Record Date | October 14, 2025 |
| TMLCV Credit Timeline | 30-45 days from record date |
| Pre-Open Session | Oct 14: 9:00 AM - 9:45 AM |
| Regular Trading Starts | Oct 14: 10:00 AM |
| F&O Reintroduction | Oct 14 after pre-open (revised lot size) |
Bottom Line For You
→ You’re not losing value, the 40% stock price drop is normal after a demerger
→ You get TWO companies, each with independent growth potential
→ Your holding period is preserved , for tax calculation purposes
→ Both stocks will trade independently, giving you more control over your portfolio
Got more doubts about this demerger or any suggestions for us?
Drop them in the comments below!
Happy Investing,
Team 5paisa!
