Tata Motors Share Price Today: TAMO Stock Crashes 40% After Demerger - Here’s What You Need to Know

Tata Motors shares opened at ₹400 apiece in a special pre-open session on Tuesday, marking a 39.5% drop from the previous close of ₹660.75. The fall reflects a technical adjustment post-demerger of its commercial vehicle (CV) business into a separate entity.

“The Company has fixed Tuesday, October 14, 2025, as the ‘Record Date’ to ascertain eligible shareholders of the Company who shall be issued and allotted 1 (one) share (face value of ₹2/- each fully paid up) in TMLCV, for every 1 (one) share (face value of ₹2/- each fully paid up) held in TML by them as on the Record Date (as per Share Entitlement Ratio under the Scheme),” Tata Motors said in a statement.

Tata Motors Renamed as Passenger Vehicle Entity
Following the demerger, Tata Motors Limited has officially been renamed Tata Motors Passenger Vehicles Limited (TMPVL). The new entity will focus solely on the passenger vehicle (PV), electric vehicle (EV), and Jaguar Land Rover (JLR) businesses.

In a regulatory filing on Monday, the company announced, “We wish to inform you that the Ministry of Corporate Affairs (MCA) has issued a Fresh Certificate of Incorporation dated October 13, 2025, changing the name of the Company from ‘Tata Motors Limited’ to ‘Tata Motors Passenger Vehicles Limited.’”

The auto major further added, “We are in the process of submitting the necessary applications to the stock exchanges to update the name in their records and on their official websites.”
Commercial Vehicle Arm to Be Listed Separately

Under the restructuring, Tata Motors Commercial Vehicles Limited (TMLCV) will emerge as a new listed entity. Once regulatory and exchange approvals are secured, TMLCV will be renamed Tata Motors Limited, representing the standalone commercial vehicle business of the group.

However, media reports suggest that no firm listing date has been finalized yet, though the process is expected to conclude within four to six weeks, likely by mid-November.

From the date of share allotment until listing, shares of TMLCV will not be available for trading. Typically, obtaining listing and trading approval takes 45–60 days after filing the necessary applications with the stock exchanges.

1:1 Share Entitlement Ratio for Shareholders
As part of the demerger scheme, Tata Motors has set a 1:1 share entitlement ratio — meaning every Tata Motors shareholder will receive one fully paid-up share (face value ₹2) in TMLCV for each share they currently hold in Tata Motors.

The company also fixed October 10 as the record date for determining debenture holders of identified non-convertible debentures (NCDs) that will be transferred to TMLCV.

Structure After the Demerger
Post the restructuring, Tata Motors will operate through two separate listed entities:
Tata Motors Passenger Vehicles Ltd (TMPVL) – housing the passenger vehicle, electric vehicle, and JLR businesses.
Tata Motors Ltd (TML) – representing the commercial vehicle business and its related investments.
TMLCV and TMPVL will adopt their respective new names after receiving formal approvals.

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