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SASI KUMAR SEBI RA

1st Oct · SEBI-Registered Analyst

Tata Motors Demerger – Explained.

Tata Motors has decided to separate its businesses into two companies – one for cars (passenger vehicles) and one for trucks & buses (commercial vehicles). This process is called a demerger. Important Date: The company has fixed October 14, 2025 as the record date. This means: whoever holds Tata Motors shares on that date will get shares in the new company. How many shares will you get? For every 1 share of Tata Motors you hold, you will get 1 share of the new company – TML Commercial Vehicles Ltd (TMLCV). Example: If you own 100 shares of Tata Motors, you will receive 100 shares of TMLCV. Listing: The new company’s shares (TMLCV) will be listed on both BSE and NSE, just like Tata Motors shares. Names after demerger: • The car division will be called Tata Motors Passenger Vehicles Ltd (TMPVL). • The truck & bus division will be listed as Tata Motors Ltd (TML). Why is this happening? By splitting into two separate companies: • Each can focus better on its own business. • It can make growth and investment easier. What does it mean for investors? If you already own Tata Motors shares, you don’t need to do anything. You will automatically get new shares of TMLCV in your demat account. In short: • Hold Tata Motors shares by Oct 14, 2025 → Get equal number of TMLCV shares. • After demerger → You will own shares of two companies instead of one.

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