Synopsis:
One of India’s largest car manufacturer, Tata Motors, is splitting its commercial vehicle division into TMLCV, with shareholders receiving one new share per Tata Motors share on Oct 14, 2025.
Tata Motors Limited will begin trading without its commercial vehicle business the day after the record date. The company will then be renamed Tata Motors Passenger Vehicles Limited. According to management, the commercial vehicle division that is being separated may start trading on the stock market by mid-November, depending on regulatory approvals.
The shares of a major international manufacturer of cars, utility vehicles, buses, trucks, and defense vehicles jumped 5 percent at the closing of the market after the company announced the record date for the demerger and NCD plans
With the market capitalization of Rs.2,64,442.55 crore, the shares of Tata Motors Limited closed at Rs.718.15, up by 5.54 percent from its previous day’s closing price of Rs.680.45 per equity share.
What’s the news?
On 1st October,2025, the company has fixed Tuesday, October 14, 2025, as the record date to determine which shareholders are eligible to receive shares of the new company. For every share held in Tata Motors, shareholders will receive one share of TMLCV (TML Commercial Vehicles Limited). These shares are proposed to be listed on BSE and NSE, subject to regulatory approvals.
Additionally, Tata Motors will begin trading without its commercial vehicles division a day after the record date, and the current company will be renamed Tata Motors Passenger Vehicles Limited. Management expects the new commercial vehicles business to start trading on the exchanges in mid-November.
The company has also set Friday, October 10, 2025, as the record date for determining which holders of Non-Convertible Debentures will have their debentures transferred from Tata Motors to TMLCV as part of the demerger scheme.
About the Company & Others
Tata Motors Limited is a major global carmaker that makes cars, utility vehicles, buses, trucks, and defense vehicles. The company designs, produces, and sells a wide variety of vehicles and also manufactures engines for industrial and marine use. It is one of India’s top automobile companies, offering a range of smart and electric mobility solutions. Tata Motors’ products include trucks from under 1 ton to 49 tons, buses and coaches of different sizes, and passenger cars.
In the first quarter of FY26, the company’s revenue from operations slipped to Rs.1,04,407 crore, compared to Rs.1,07,102 crore in the same period last year. Net profit slipped to Rs.4,003 crore from Rs.10,587 crore a year earlier. The company’s return on equity is 28 percent, and return on capital employed is 20 percent. It has a P/E ratio of 12.28, with the industry average of 36.58.
Written By: Jhanavi Sivakumar
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