Tata Motors Announces Record Dates for Demerger, Shares Jump 5%
Tata Motors Ltd. has fixed the key dates for the demerger that will split the company into two separately listed entities: the Commercial Vehicles (CV) division and the Passenger Vehicles (PV) division. The news drove the Tata Motors share price up nearly 5% in Wednesday’s trading session.
The formal split is scheduled to take effect on October 1.
Key Dates and Share Allotment for Investors
The company announced the following crucial dates for shareholders and debenture holders:
New Entities and Listing
The demerger will result in two new companies:
- Passenger Vehicles (PV) Business: This will be named Tata Motors Passenger Vehicles Ltd (TMPVL).
- Commercial Vehicles (CV) Business: This newly created entity will retain the name Tata Motors Ltd (TMLCV) and is planned to be listed on both the BSE and NSE.
The new shares of the CV company are expected to be credited into shareholder demat accounts by early November 2025, approximately 30 days after the record date, subject to necessary regulatory approvals.
In practical terms, an investor owning 50 shares of Tata Motors on the record date of October 14 will end up with 50 shares of TMPVL (the continuing PV entity) and an additional 50 shares of TMLCV (the new CV entity), doubling their total number of shares held in the two businesses.
