Tata Motors Demerger: Know Record Date, Share Swap Ratio, And What It Means For Shareholders

Tata Motors’ long-awaited demerger came into effect on October 1, 2025, as the auto giant is set to split its commercial and passenger vehicle businesses into two separate listed entities. The Mumbai Bench of the National Company Law Tribunal (NCLT) approved the demerger scheme earlier this year.

Tata Motors Demerger Company Names: What Changes After The Spin-Off?

Under the new arrangement, the existing entity, Tata Motors Ltd, will now become the passenger vehicle arm. It will house the passenger vehicle (PV) and electric vehicle (EV) operations, as well as the Jaguar Land Rover (JLR) business, and will be renamed Tata Motors Passenger Vehicles Ltd.

The demerged commercial vehicle business will operate under a newly created company, TML Commercial Vehicles Ltd (TMLCV), which will retain the name Tata Motors Ltd.

Tata Motors Demerger Record Date

Tata Motors has set October 14, 2025, as the record date for the demerger. Shareholders on record as of that date will receive shares in the newly created TML Commercial Vehicles Ltd.

In its filing dated October 1, Tata Motors said, “The Company has fixed Tuesday, October 14, 2025 as the ‘Record Date’ for the purpose of ascertaining the shareholders of the Company who shall be issued and allotted 1 (One) share of TMLCV (face value of INR 2/- each fully paid up), for every 1 (One) share of the Company (face value of INR 2/- each fully paid up) of the same class of shares outstanding and as held by such shareholder in the Company on the ‘Record Date’.”

Separately, the Company has also fixed October 10, 2025, as the record date for identifying debenture holders of specific non-convertible debentures (NCDs) that will be transferred to TML Commercial Vehicles Ltd.

Tata Motors Demerger Share Swap Ratio

The Company said that the share swap ratio for the demerger will be 1:1. In simple terms, this means that for every single share of Tata Motors that an investor currently owns, with a face value of Rs 2 each, they will be allotted one share of the new Company, TML Commercial Vehicles Ltd, also with a face value of Rs 2 each.

This means shareholders will see their current holdings mirrored in TML Commercial Vehicles Ltd, with each Tata Motors share converting into one share of the new Company, keeping their stake intact.

Tata Motors Demerger Listing Date

Shares of TML Commercial Vehicle Ltd are proposed to be listed on both the National Stock Exchange (NSE) and BSE (formerly Bombay Stock Exchange). Tata Motors has not yet announced the listing date of the new entity. It is expected to be announced after the allotment of shares.

Tata Motors Share Price

On October 3, Tata Motors share price surged to its three-month high of Rs 739.70 apiece on the NSE before closing in the red at Rs 716.10 per share. Earlier on October 1, the day when record date was announced, Tata Motors stock registered a jump of 5.61 per cent. Over the last week the auto stock has rallied 6.42 per cent.

However, year-to-date (YTD), the stock has yielded a negative return of 4.44 per cent. Over an year, it shows a decline of 22.70 per cent.

Tata Motors PV, CV Sales September 2025

The demerger comes on the back of a strong second-quarter performance. Tata Motors reported robust double-digit growth across both passenger vehicle and commercial vehicle businesses in Q2 FY26, ended September 30, 2025.

PV Sales Sees 10% YoY Growth In September

The passenger vehicle division, including EVs, sold 1,44,397 units in Q2 FY26, up more than 10 per cent year-on-year (YoY) from 1,30,753 units in the same quarter last year. September 2025 was a standout month, with 60,907 units sold, the highest ever in a single month for the Company, up 47 per cent from September 2024.

EVs powered much of this growth, contributing 17 per cent of total passenger vehicle sales in the quarter. EV sales surged 59 per cent YoY to 24,855 units in Q2, with September alone seeing a record 9,191 units, up 96 per cent YoY. The Company’s CNG portfolio also saw strong traction, with sales crossing 17,800 units in September, more than doubling YoY.

Nexon led the charge, selling over 22,500 units in September, the highest-ever monthly sales for any Tata Motors passenger vehicle.

Shailesh Chandra, MD of Tata Motors Passenger Vehicles Ltd, said in the filing that customer interest was “exceptionally strong” following the rollout of GST 2.0 and festive discounts.

CV Sales Sees 12% YoY Growth

The Commercial Vehicle segment saw sales of 94,681 units in Q2 FY26, up 12 per cent from 84,281 units a year ago. Domestic sales grew 9 per cent to 87,061 units, while international sales surged 75 per cent to 7,620 units.

Among CVs, small commercial vehicles and pickups rose 11 per cent for the quarter, with a sharp 30 per cent jump in September following new launches like the Ace Pro and Ace Gold+. The intermediate, light, and medium truck segment also grew 15 per cent during the quarter.

Executive Director of Tata Motors Girish Wagh called it a “mixed quarter” for commercial vehicles. However, September recorded the best month of FY26 for the auto giant, as it sold 35,862 units in the month, up 19 per cent YoY.

“While July faced headwinds due to monsoon and August reflected cautious sentiment ahead of the GST 2.0 rollout, the onset of the festive season and lower GST rates from late September brought a good recovery in sales, bookings and sentiment,” Wagh said.