Tata Motors Demerger Record Date: The much-awaited record date is here for the investors of Tata Motors as the company splits on October 14. On Tuesday, the shares of Tata Motors are trading below Rs 450, sharply down from the previous session and the reason is its 1:1 demerger scheme.
So investors need not panic, as the stock of Tata Motors is adjusting to the ratio.
Tata Motors is being listed in two separate entities, meaning it is splitting its business into two. While one business is solely focused on its passenger cars, utility vehicles and Jaguar Land Rover cars, the other is purely meant for commercial vehicles.
The passenger car segment is called Tata Motors Passenger Vehicles Limited and the commercial side will be called TML Commercial Vehicles Limited. While the listing date of TML Commercial is yet to be announced, the eligible shareholders for holding shares in this new entity will be determined after market hours of October 14th.
That being said, the latest price of Tata Motors that you see on BSE and NSE is currently of its Tata Motors Passenger Vehicles, adjusting to the demerger ratio. The Ministry of Corporate Affairs has also approved the name change of Tata Motors to Tata Motors Passenger Vehicles Limited but its trading symbol on exchanges still remains Tata Motors.
Tata Motors Share Price:
The passenger vehicles stock of Tata Group is trading at Rs 412.65 apiece, up by 3.42% on BSE after hitting an intraday high of Rs 421.45 apiece. Tata Motors market value has also corrected to Rs 1,51,840.93 crore.
It also needs to be noted that due to the demerger changes, Tata Motors share price has crashed nearly 43% after hitting an intraday low of Rs 376.90 apiece in early trade on BSE, compared to the previous day’s price.
Before the demerger record date, Tata Motors shares stood at Rs 660.90 apiece on BSE, with 52-week high and low of Rs 939.60 apiece and Rs 376.90 apiece respectively.
It also needs to be noted that this stock still continues to hold a healthy return on equity of 28.12%.
Tata Motors Demerger Record Date:
To identify eligible shareholders for 1:1 demerger, Tata Motors has fixed October 14th as the record date. This means that only those investors will be issued and allotted 1 (One) share of TMLCV (face value of INR 2/- each fully paid up), for every 1 (One) share of the Company (face value of INR 2/- each fully paid up) of the same class of shares outstanding and as held by them in the Company on the “Record Date.”
On the Record Date, the share price of TML shall be adjusted to take into account the demerger of the commercial vehicles business through a price discovery mechanism of the stock exchanges.
Upon finalization of the list of eligible Shareholders of TML, the shares in TMLCV shall be allotted and thereafter, such shares shall be listed on the Stock Exchanges, viz., BSE and NSE.
During the period from the date of allotment of shares by TMLCV upto the date of listing on BSE & NSE thereof, the shares of TMLCV shall not be available for trading on the Stock Exchanges.
The process of obtaining Listing and Trading permission generally takes 45-60 days from the date of filling the necessary application with Stock Exchanges.
Hence, TML Commercial Vehicles is expected to list in November 2025.
Tata Motors Demerger Impact On Your Portfolio:
According to Kotak Securities explainer, here’s what will happen to your portfolio:
October 14, 2025 (Demerger Date)
- Your Tata Motors shares continue as usual
- Market Price will drop to reflect the split
- Your average buy price stays unchanged for now
- You’ll see a temporary dip in your unrealized P&L
TML Commercial Vehicles Listing In 45 Days:
-New TML Commercial Vehicles shares will be credited to your demat account
-Your Tata Motors average buy price will be adjusted automatically
-Your portfolio will show both holdings
Example: For instance, you are holding 100 shares of Tata Motors at an original price of Rs 700
Before TML Commercial Vehicles Listing: Here’s what you will face:
You will still hold 100 shares at the Rs 700 price, while your total investment will remain the same at the original price. But, before the shares to TML are seen in your account, you will face a decline in unrealized PNL until new shares are credited.
After TML Commercial Vehicles Listing:
Kotak assumes a 60:40 ratio! Then, you will see 100 shares of Tata Motors Passenger Vehicles at Rs 420 per piece (60% of the demerger). And, you will see 100 shares of TML Commercial Vehicles in your portfolio, if you are eligible, but at price of Rs 280 per share. The two separate shares total to Rs 700 which was your original price. Hence, total investment still remains at Rs 800, but your unrealized PNL gets adjusted accordingly.