Tata Motors Share Price Rises as Demerger Becomes Effective: Key Details Investors Should Know

Market Performance

The stock market today opened with noticeable activity around Tata Motors share price as the long-awaited demerger came into effect on October 1, 2025. In early trade, the stock jumped nearly 3%, reflecting investor attention toward this structural shift in the company.

On October 3, 2025, Tata Motors shares climbed to ₹739.55 apiece on the BSE, compared to the previous close of ₹718.15, marking a gain of 2.97%. The stock also touched a 52-week high of ₹950.30 on October 3, 2024, and a 52-week low of ₹542.55 on April 7, 2025.

Main News: Tata Motors Demerger Effective

The Tata Motors demerger has officially separated the company’s businesses into two distinct entities. Effective from October 1, 2025, the company’s divisions have been reorganized to bring sharper focus to their respective markets.

• Commercial Vehicle Division → Demerged into TML Commercial Vehicles Limited (TMLCV)
• Passenger Vehicle Division → Retained under Tata Motors, renamed as Tata Motors Passenger Vehicles Limited

This restructuring marks a significant milestone, aimed at giving each division operational independence and a clearer identity in the automobile industry.

Company Details: Demerger Ratio & Record Date

As part of the demerger, Tata Motors has laid down clear terms for shareholders.

• Share Entitlement Ratio: 1:1 → Shareholders will receive one fully paid-up share of ₹2 in TML Commercial Vehicles Limited for every share held in Tata Motors.
• Record Date:The record date for shareholder eligibility has been set as October 14, 2025.
• Listing of New Entity: TML Commercial Vehicles Limited is set to be listed separately on both BSE and NSE in November 2025.

This separation ensures both the commercial vehicle and passenger vehicle arms will have independent balance sheets and governance structures, giving them more room to grow in their respective markets.

Stock Market Today: Tata Motors Share Price Movement

The Tata Motors share price reflected the optimism around the demerger. The stock opened slightly higher at ₹719.25 apiece and surged nearly 3% intraday, touching ₹739.55 on the BSE.

This rise comes right after the demerger announcement went live, underlining how corporate actions like restructuring often drive short-term stock price momentum.

Summary 

• Demerger Effective Date: October 1, 2025
• Record Date: October 14, 2025
• Entitlement Ratio: 1:1 (One TMLCV share for each Tata Motors share)
• Tata Motors Share Price: Jumped nearly 3% in early trade post demerger
• 52-Week Range: High of ₹950.30 (Oct 2024), Low of ₹542.55 (Apr 2025)
• Next Step: TMLCV listing on NSE & BSE expected in November 2025

The Tata Motors demerger is now in effect, creating two independent companies — one focusing on commercial vehicles and the other on passenger vehicles. With the share entitlement ratio of 1:1 and the record date set for October 14, 2025, the development marks an important chapter for both the company and its shareholders.