Tata Motors Demerger: Passenger Vehicle Share Price and Key Updates

Tata Motors has officially completed its long-awaited demerger, spinning off the Commercial Vehicle (CV) business into a separate entity. Investors witnessed the market debut of the newly named Tata Motors Passenger Vehicles Limited (TMPVL), while TML Commercial Vehicles Limited (TMLCV) prepares for its upcoming listing.

Market Performance

The first trading session of the ex-CV entity reflected active market participation:

• NSE opening price: ₹400 per share
  
  
• BSE opening price: ₹399 per share
  
  
• Intra-day movement: Shares rallied over 5% from the discovered price, peaking at ₹421.45 on the BSE
  
  

The demerger created a natural adjustment in the market. Tata Motors Passenger Vehicle shares reflect the exclusion of the CV business, while investors holding original Tata Motors shares receive one fully paid-up TMLCV share for every one TMPVL share.

Demerger Details

The demerger, effective October 1, 2025, follows a clear timeline:

• August 2024: Board approves demerger proposal
  
  
• March 2025: Shareholder vote ordered by NCLT; voting cutoff on March 28
  
  
• May 6, 2025: Shareholders approve the scheme
  
  
• October 1, 2025: Commercial Vehicle business spun off to TMLCV
  
  
• October 14, 2025: Record date for shareholders to receive TMLCV shares
  
  
• Early November 2025: TMLCV to list on BSE and NSE
  
  

The demerger also comes with a 1:1 share entitlement ratio, meaning each Tata Motors shareholder receives one TMLCV share for every Tata Motors share held on the record date.

Tata Motors Passenger Vehicle Business

Post-demerger, Tata Motors Passenger Vehicles Limited continues to operate the passenger vehicle business, including Jaguar Land Rover (JLR) and electric vehicle operations. The company’s structure is now designed for focused growth and operational clarity:

• Sharper focus on passenger and electric vehicles
  
  
• Clearer capital allocation for domestic and international markets
  
  
• Enhanced transparency for investors with two independently listed entities
  
  

Share Price Discovery

The share price of the newly named TMPVL was determined through a special pre-open session:

• The ex-CV entity was valued around ₹400 per share
  
  
• Initial trades on BSE began at ₹399
  
  
• Early session movements saw TMPVL shares rebound over 5% from the discovered price
  
  

Meanwhile, the CV business shares, to be listed separately in November, will allow investors to hold stakes in both independent entities, maintaining overall value from the original Tata Motors holdings.

Summary

The Tata Motors demerger represents a major structural shift in the company’s operations. Investors now have:

• TMPVL: Focused passenger vehicle and JLR business
  
  
• TMLCV: Dedicated commercial vehicle operations
  
  
• A clear 1:1 share entitlement ratio ensuring equity distribution for all shareholders
  
  

This demerger is set to provide operational clarity, better market focus, and independent growth paths for both entities. The TMPVL share price opening reflects market alignment with these strategic changes, while TMLCV’s listing in early November will complete the structural transition.