The demerger record date for Tata Motors was October 14, 2025. The authorized scheme of arrangement provided a 1:1 entitlement ratio, meaning that stockholders who owned Tata Motors shares on the record date also received one share of Tata Motors Commercial Vehicles Limited (TMLCV).
On October 14, 2025, Tata Motors' share price started trading ex-demerger, reflecting the division of the company's Commercial Vehicle (CV) division. After being adjusted for the carve-out of the CV segment, the stock now solely represents the passenger vehicle (PV) business following the demerger.October 14, 2025, was the demerger record date for Tata Motors. The authorized scheme of arrangement provided a 1:1 entitlement ratio, meaning that stockholders who owned Tata Motors shares on the record date also received one share of Tata Motors Commercial Vehicles Limited (TMLCV).
Provide Allotment Information
Tata Motors verified in a regulatory filing that 368.23 crore fully paid equity shares, each worth ₹2, had been distributed in a 1:1 ratio to qualified TMLCV shareholders..
Provide Allotment Information
Tata Motors verified in a regulatory filing that 368.23 crore fully paid equity shares, each worth ₹2, had been distributed in a 1:1 ratio to qualified TMLCV shareholders..
The listing of TMLCV shares on the BSE and NSE, which is anticipated to occur 45–60 days after the required applications have been filed with the stock exchanges, will be the next significant milestone for investors.
The valuation and share price of Tata Motors Commercial Vehicles
The electric vehicle (EV) vertical and Jaguar Land Rover (JLR) are part of Tata Motors' passenger vehicle (PV) division, which was valued at around ₹1.45 lakh crore after the demerger.
Comparable valuations are anticipated for the commercial vehicle (CV) arm.
In contrast to the pre-demerger close of ₹660.75, shares of Tata Motors (now representing the PV unit) were found on the NSE on October 14 for ₹400 per. Based on the residual value, this suggests a valuation of around ₹260.75 per share for TMLCV.
The valuation and share price of Tata Motors Commercial Vehicles
The electric vehicle (EV) vertical and Jaguar Land Rover (JLR) are part of Tata Motors' passenger vehicle (PV) division, which was valued at around ₹1.45 lakh crore after the demerger.
Comparable valuations are anticipated for the commercial vehicle (CV) arm.
In contrast to the pre-demerger close of ₹660.75, shares of Tata Motors (now representing the PV unit) were found on the NSE on October 14 for ₹400 per. Based on the residual value, this suggests a valuation of around ₹260.75 per share for TMLCV.
The Tata Motors demerger, according to Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd., not only improves strategic clarity but also unlocks shareholder value because, in a combined company, the market frequently undervalues one segment because of the overshadowing performance or complexity of the other.
The value-accretive nature of the Tata Motors demerger ratio rewards shareholders who owned Tata Motors shares on or before the record date.
Estimates of Analysts
Tapse rates the independent Tata Motors Commercial Vehicles (CV) at about ₹400 per share based on financial parameters, growth potential, and peer valuation multiples. Investors looking for consistent cash flows and cyclical value opportunities are therefore likely to be drawn to it.
The value-accretive nature of the Tata Motors demerger ratio rewards shareholders who owned Tata Motors shares on or before the record date.
Estimates of Analysts
Tapse rates the independent Tata Motors Commercial Vehicles (CV) at about ₹400 per share based on financial parameters, growth potential, and peer valuation multiples. Investors looking for consistent cash flows and cyclical value opportunities are therefore likely to be drawn to it.
According to him, the valuation of Tata Motors' PV business is projected to be around ₹500 per share, taking into account growth drivers, financial performance, and peer valuation multiples.
Tata Motors Passenger Vehicles (TMPV) and TMLCV are valued by Nomura at ₹367 and ₹365 per share, respectively. Nomura warns of short-term "technical volatility" while the stock stabilizes at ex-demerger levels.
SBI Securities estimates ₹320–470 for TMLCV, taking into account its proposed €3.8 billion acquisition of Iveco Group NV's commercial vehicle assets, and anticipates TMPV to trade in the ₹285–384 range, bolstered by JLR's increasing profitability.
According to Ambit Institutional Equities, the CV company is better positioned to benefit from the restructuring because of its market leadership, industry-matching margins, and robust cash flow creation.
Tata Motors Passenger Vehicles (TMPV) and TMLCV are valued by Nomura at ₹367 and ₹365 per share, respectively. Nomura warns of short-term "technical volatility" while the stock stabilizes at ex-demerger levels.
SBI Securities estimates ₹320–470 for TMLCV, taking into account its proposed €3.8 billion acquisition of Iveco Group NV's commercial vehicle assets, and anticipates TMPV to trade in the ₹285–384 range, bolstered by JLR's increasing profitability.
According to Ambit Institutional Equities, the CV company is better positioned to benefit from the restructuring because of its market leadership, industry-matching margins, and robust cash flow creation.
With the residual listed entity price settling at about ₹380 per share, we anticipate instant value unlocking for CV. The Iveco acquisition's global reach and synergies may result in re-rating upside. The agency said, "We are still buyers."
What Do Tata Motors Shareholders Stand to Gain?
Investors currently own shares in two separate companies following the demerger:
1. Jaguar Land Rover, EV division, and domestic passenger car business are all part of Tata Motors Passenger Vehicles Limited (TMPV).
As of FY25, JLR accounts for 87% of the company's revenue, compared to 13% for domestic businesses.
> Contains holdings in Tata Steel, Tata Technologies, Tata Sons (unlisted), and other group firms.
What Do Tata Motors Shareholders Stand to Gain?
Investors currently own shares in two separate companies following the demerger:
1. Jaguar Land Rover, EV division, and domestic passenger car business are all part of Tata Motors Passenger Vehicles Limited (TMPV).
As of FY25, JLR accounts for 87% of the company's revenue, compared to 13% for domestic businesses.
> Contains holdings in Tata Steel, Tata Technologies, Tata Sons (unlisted), and other group firms.
2. The domestic CV operations are included under Tata Motors Commercial Vehicles Limited (TMLCV).
Additional investments and subsidiaries include Tata Motors Body Solutions, TML Smart City Mobility Solutions, and Tata Daewoo Mobility Co. (South Korea).
>Iveco's commercial vehicle business will be integrated; a purchase is anticipated in 2026.
Through its subsidiary TMF Holdings, it owns a 4.7% share in Tata Capital.
In November 2025, it is planned to float on the BSE and NSE.
Additional investments and subsidiaries include Tata Motors Body Solutions, TML Smart City Mobility Solutions, and Tata Daewoo Mobility Co. (South Korea).
>Iveco's commercial vehicle business will be integrated; a purchase is anticipated in 2026.
Through its subsidiary TMF Holdings, it owns a 4.7% share in Tata Capital.
In November 2025, it is planned to float on the BSE and NSE.
Forecast for the Share Price of Tata Motors
It is anticipated that the Tata Motors demerger will result in targeted, autonomously run companies, releasing long-term wealth for investors. TMLCV is well-positioned to profit from its market leadership in the CV segment and synergies from the impending Iveco purchase, while TMPV is probably going to gain from JLR's margin improvement and the expanding EV portfolio.
"From a fundamental standpoint, the PV company presently has more upside potential because to its strategic location in the premium and EV markets and robust growth levers. Conversely, the CV industry offers more protective features that are especially alluring in an atmosphere of infrastructure-led growth and a favorable macroeconomic climate, according to Tapse.
It is anticipated that the Tata Motors demerger will result in targeted, autonomously run companies, releasing long-term wealth for investors. TMLCV is well-positioned to profit from its market leadership in the CV segment and synergies from the impending Iveco purchase, while TMPV is probably going to gain from JLR's margin improvement and the expanding EV portfolio.
"From a fundamental standpoint, the PV company presently has more upside potential because to its strategic location in the premium and EV markets and robust growth levers. Conversely, the CV industry offers more protective features that are especially alluring in an atmosphere of infrastructure-led growth and a favorable macroeconomic climate, according to Tapse.
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