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News for India > Business > Tata Motors Demerger: What it means for PV and CV shareholders | Stock Market News
Business

Tata Motors Demerger: What it means for PV and CV shareholders | Stock Market News

Last updated: October 16, 2025 9:59 am
4 months ago
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Contents
Share Allotment DetailsTata Motors Commercial Vehicles Share Price & ValuationAnalysts’ EstimatesWhat’s in It for Tata Motors Shareholders?1. Tata Motors Passenger Vehicles Limited (TMPV):2. Tata Motors Commercial Vehicles Limited (TMLCV):Tata Motors Share Price Outlook

Tata Motors share price began trading ex-demerger from October 14, 2025, reflecting the separation of the company’s Commercial Vehicle (CV) business. Following the demerger, the stock now represents only the passenger vehicle (PV) business, adjusted for the carve-out of the CV segment.

The Tata Motors demerger record date was October 14, 2025. Under the approved scheme of arrangement, shareholders who held Tata Motors shares on the record date received one share of Tata Motors Commercial Vehicles Limited (TMLCV) for every one share held in Tata Motors, i.e., a 1:1 entitlement ratio.

Share Allotment Details

In a regulatory filing, Tata Motors confirmed that 368.23 crore fully paid equity shares of face value ₹2 each have been allotted to eligible shareholders of TMLCV under the 1:1 ratio.

The next key milestone for investors will be the listing of TMLCV shares on the BSE and NSE, which is expected within 45–60 days from the filing of necessary applications with the stock exchanges.

Tata Motors Commercial Vehicles Share Price & Valuation

Following the demerger, Tata Motors passenger vehicle (PV) business, which includes the electric vehicle (EV) vertical and Jaguar Land Rover (JLR), has been valued at around ₹1.45 lakh crore.

The commercial vehicle (CV) arm is expected to hold comparable valuations.

On October 14, shares of Tata Motors (now representing the PV unit) were discovered at ₹400 apiece on NSE, compared with the pre-demerger close of ₹660.75. This implies a valuation of around ₹260.75 per share for TMLCV, based on the residual value.

Analysts’ Estimates

Nomura has valued Tata Motors Passenger Vehicles (TMPV) at ₹367 per share and TMLCV at ₹365 per share, while cautioning about short-term “technical volatility” as the stock stabilises at ex-demerger levels.

SBI Securities expects TMPV to trade in the ₹285–384 range, supported by JLR’s improving profitability, and projects ₹320–470 for TMLCV, factoring in its planned €3.8 billion acquisition of Iveco Group NV’s commercial vehicle assets.

Ambit Institutional Equities noted that the CV business, with market leadership, industry-matching margins, and healthy cash flow generation, is better positioned to capitalise on the restructuring.

“We expect immediate value unlocking for CV, with residual listed entity price settling at around ₹380/share. Global reach and synergies from the Iveco acquisition could provide re-rating upside. We remain buyers,” the brokerage stated.

What’s in It for Tata Motors Shareholders?

Post-demerger, investors now hold shares in two independent entities:

1. Tata Motors Passenger Vehicles Limited (TMPV):

>Comprises the domestic passenger vehicle business, EV division, and Jaguar Land Rover.

> Holds investments in Tata Sons (unlisted), Tata Steel, Tata Technologies, and other group companies.

2. Tata Motors Commercial Vehicles Limited (TMLCV):

>Includes the domestic CV operations.

>Will integrate the Iveco commercial vehicle business (acquisition expected in 2026).

>Holds a stake in Tata Capital.

>Proposed to be listed on both BSE and NSE in November 2025.

Tata Motors Share Price Outlook

Tata Motors demerger is expected to create focused, independently managed businesses, unlocking long-term value for shareholders. While TMPV is likely to benefit from JLR’s margin expansion and the growing EV portfolio, TMLCV is positioned to gain from its market dominance in the CV segment and synergies from the upcoming Iveco acquisition.

Both entities will now have the flexibility to pursue independent growth strategies, and investors will be able to value each business separately, aiding in better price discovery.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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