Tata Motors Shares Slip Ahead of Demerger: Last Day of Consolidated Trading

On October 13, 2025, Tata Motors sharesdeclined by as much as 2% marking the final day the stock will trade as a unified entity ahead of its much-anticipated demerger.

What Does This Mean for Shareholders?

The company has set Tuesday, October 14, as the record date for the spin-off of its Commercial Vehicles (CV) business. Investors holding Tata Motors shares in their demat accounts at the close of trade on Monday will be eligible to participate in the demerger scheme.

Under the terms of the arrangement, eligible shareholders will receive one share of the newly demerged entity for every one share held in Tata Motors. Each share carries a face value of ₹2.

Two New Entities After Demerger

Although the demerger becomes effective as of October 1, 2025, the share price of the existing Tata Motors stock will be adjusted on the record date to reflect the separation of the CV business. This price adjustment will be determined through the stock exchanges' price discovery mechanism.

Following the split, the demerged entity will be known as Tata Motors Ltd. – Commercial Vehicles, while the remaining listed company will operate as Tata Motors Passenger Vehicles Ltd. (TMPVL).

Also Read: Tata Motors Set for Major Spin-Off: Demerger Record Date is Tomorrow, October 14, 2025

During the transition period, between the allotment of shares in the new entity and its eventual listing, the demerged shares will not be available for trading. According to Tata Motors' recent exchange filing, this process of securing listing and trading permissions typically takes 45 to 60 days.

The demerger was originally announced in 2023 and has since secured all necessary regulatory approvals.

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