Tata Motors announces record date for CV business demerger; Check details here

Tata Motors Ltd

., the manufacturer of passenger and commercial vehicles, has announced that Tuesday, October 14, 2025, will be the record date for the demerger of its Commercial Vehicle business into a separate, listed entity.

Wednesday, October 1, is the effective date of the demerger taking place.

This means, that shareholders, who have shares of Tata Motors in their demat account before October 14, will be eligible to receive shares of the demerged entity. Eligible shareholders will be entitled to one share of the demerged business for every one share they own as of the record date.

Tata Motors will start trading ex-its commercial a day after the record date and the current listed entity will be renamed as Tata Motors Passenger Vehicles Ltd. (TMPVL). The management highlighted in its analyst meet that the demerged CV business is likely to start trading on the bourses sometime mid-November, subject to regulatory approvals.

Tata Motors has been in the news for the production hassles faced by its UK unit Jaguar Land Rover. As per its last official communication, the production pause had been extended until October 1. While the company has maintained in subsequent updates that operations are slowly coming onstream, it has not shared any definitive timeline as to when will production resume.

Brokerage firm Jefferies in a note on Tuesday wrote that while it remains optimistic on India's Passenger Vehicle demand, it is less convinced about improvement in Tata Motors' Passenger Vehicles margins, and the recent Iveco acquisition. As a result, it remains underweight on the stock with a price target of ₹575.

Shares of Tata Motors are now trading 4% higher after the record date announcement at ₹707.3.