Tata Motors sets October 1 as effective date for business demerger; everything we know so far

• Published On Aug 13, 2025 at 02:02 PM IST

The record date to determine eligible shareholders will be announced closer to the completion of the process through stock exchange notifications.

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Tata Motors has set October 1, 2025, as the effective date for the demerger of its commercial vehicle (CV) and passenger vehicle (PV) businesses, marking the final leg of its long-planned business split, Financial Express reports. In a regulatory filing, the company said the separation process is expected to be completed within the current quarter (Q2 FY26), following the conclusion of the final hearing on the scheme by the National Company Law Tribunal (NCLT), which has reserved its order.Under the approved plan, the CV business and related investments will be transferred to a new entity, TML Commercial Vehicles Ltd, which will later be renamed Tata Motors Ltd. The existing listed company will retain the PV, electric vehicle (EV), and Jaguar Land Rover (JLR) businesses, as well as the Tata Motors name.The demerger will follow a 1:1 share allotment ratio, meaning shareholders will receive one share in the new CV entity for every Tata Motors share held. Both companies will be listed independently on the NSE and BSE, enabling investors to trade the two businesses separately.

The record date to determine eligible shareholders will be announced closer to the completion of the process through stock exchange notifications, after which Tata Motors shares will trade ex-demerger.