Tata Motors demerger record date announced; when will shares be available in the new company?:

News Topical, Digital Desk : Tata Motors Demerger Record Date: Tata Motors has split. Effective October 1st, Tata Motors' two segments—commercial vehicles (CV) and passenger vehicles (PV)—were separated. This means the two companies will now be separate. With this demerger, the commercial vehicle (CV) business will be transferred to Tata Motors Limited Commercial Vehicles Limited (TMLCV), while the electric vehicle (EV) and PV businesses, including Jaguar Land Rover (JLR), will remain with Tata Motors.

Know when is the record date of demerger?

Tata Motors informed the exchange that following last week's NCLT approval of the Scheme of Arrangement involving Tata Motors Limited (TML), TML Commercial Vehicles Limited (TMLCV), and Tata Motors Passenger Vehicles Limited (TMPV), the company has set Tuesday, October 14, 2025, as the record date. This means that investors holding shares in the company as of this date will receive shares in the new company. Under this agreement, shareholders will receive one share for every one held, with a face value of ₹2 per share. These shares will be listed on the BSE and NSE as per regulations.

What does Jefferies expect?

Brokerage firm Jefferies said on Tuesday that it remains positive on demand for the passenger vehicle segment in India, but sees challenges at JLR. It is less confident about improving margins in the passenger vehicle segment and the acquisition of Iveco Group. Jefferies maintained its "underperform" rating on Tata Motors and set a target price of 575. Tata Motors shares were trading at ₹717.40, up 5.43%, as of 2:40 p.m. Wednesday, after the demerger became effective.

Why was there a need for demerger?

In August last year, Tata Motors approved the demerger of its commercial and passenger vehicle divisions to sharpen focus and open up more diverse growth avenues. Under this plan, the commercial vehicle business will be consolidated into a separate entity, while the passenger vehicle business—which includes electric vehicles, Jaguar Land Rover (JLR), and related investments—will be a separate entity. Following the demerger, the passenger vehicle division will be known as Tata Motors Passenger Vehicles (TMPVL), and the commercial vehicle segment will be listed as Tata Motors Limited (TML). The listing is expected to take place in November.