Auto
|
Updated on 11 Nov 2025, 04:39 am
Reviewed By
Simar Singh | Whalesbook News Team
▶
Tata Motors is set to complete its corporate split as its commercial vehicle division, now known as Tata Motors Commercial Vehicle (TMLCV), is scheduled for listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 12, 2025. This follows the recent independent trading of its passenger vehicle business, Tata Motors Passenger Vehicle (TMPVL), which began on October 14. Shareholders of Tata Motors will receive one share of TMLCV for each share they own in Tata Motors as of the record date, October 14, 2025, maintaining their overall stake but dividing it between the two newly listed entities. The shares for the new CV entity have been credited to investors' demat accounts and were frozen pending listing approval. The CV entity will trade under a new symbol. This demerger is a non-cash event for shareholders, with no change in overall ownership, only a division.
Impact This demerger allows investors to separately evaluate and invest in the distinct growth prospects of Tata Motors' commercial vehicle and passenger vehicle businesses. It provides greater clarity on the valuation of each segment, potentially leading to better capital allocation and focused strategies, which could positively impact the overall market perception and investor interest in Tata Motors' various ventures. Rating: 7/10
Difficult Terms: Demerger: The process of splitting a company into two or more independent entities. Corporate Split: The act of dividing a single corporation into separate, distinct companies. Record Date: A specific date set by a company to determine which shareholders are eligible to receive dividends, stock splits, or other corporate actions. Demat Accounts: Accounts used to hold shares and other securities in electronic form. Listing: The process by which a company's shares are admitted for trading on a stock exchange.