Tata Motors’ shares witnessed a sharp correction on Tuesday, opening at ₹400 apiece in a special pre-open session—about 39.5% lower (₹260.75 per share) than the previous day’s closing price. The decline isn’t a sell-off panic but a technical adjustment due to the company’s ongoing demerger process, which separates its commercial vehicle business into a new entity.
As per Tata Motors’ statement, the company set October 14, 2025, as the record date to determine eligible shareholders. Each shareholder of Tata Motors will receive one share of Tata Motors Commercial Vehicles Limited (TMLCV) for every one share held in Tata Motors (TML). Both shares will carry a face value of ₹2 each.
Two Independent Listed Entities to Emerge
Under the new structure:
The existing Tata Motors Limited will be renamed Tata Motors Passenger Vehicles Limited (TMPV) and continue managing the passenger vehicle, electric vehicle (EV), and Jaguar Land Rover (JLR) operations.
The demerged commercial vehicle (CV) arm will now operate under the name Tata Motors Commercial Vehicles Limited (TMLCV), which will later be renamed Tata Motors Limited once approvals are finalized.
TMPV will remain the listed entity for now, while TMLCV’s shares—though allotted—will not trade until the stock receives formal listing approval from the BSE and NSE. The listing process for the commercial vehicle entity is anticipated to take around 45–60 days, placing a potential trading commencement timeline around mid-November 2025.
Updated Regulatory Changes
In its recent filing, Tata Motors confirmed that the Ministry of Corporate Affairs (MCA) issued a new Certificate of Incorporation on October 13, 2025, formalizing the name change to Tata Motors Passenger Vehicles Limited. The company is in the process of updating this name change across stock exchange records and official documents. Simultaneously, TMLCV will apply for its name change to Tata Motors Limited after necessary approvals.
Impact on Investors and Shareholding
The record date of October 14 fixes the entitlement for shareholders to receive new TMLCV shares. From October 15 onward, the stock reflects only Tata Motors’ passenger vehicle and EV operations, resulting in the steep adjustment in share price.
Additionally, the company fixed October 10 as the record date for transferring specific non-convertible debentures (NCDs) to the demerged CV company.
In summary, Tata Motors’ massive price drop isn’t a market panic but a structural realignment as the company transitions into two focused listed entities:
TMLCV (to be renamed Tata Motors Ltd) — hosting the commercial vehicle operations.
TMPV (formerly Tata Motors Ltd) — holding the passenger vehicle, EV, and JLR segments.
