1:1 Split: Last Day For Tata Motors Scrip On BSE, NSE; Name Changes From Oct-24; Demerger Impact On Tata Stock

Tata Motors' shares witnessed healthy buying sentiment on October 23rd, as the final stages of its 1:1 demerger neared. This also comes at a time when Tata Motors scrip will change to TMPV from October 24th onward on BSE and NSE. The demerger is expected to create value for both Tata Motors and its investors; however, many analysts have expressed concerns related to Jaguar Land Rover and its impact on Tata Motors' growth trajectory ahead.

Tata Motors Share Price:

At the time of writing, Tata Motors share price traded at Rs 408.35 apiece on BSE, up by 1.60% with market cap at Rs 1,50,368.00 crore. The stock is near its intraday high of Rs 408.80 apiece.

Tata Motors Name Change To Tata Motors Passenger Vehicles:

The Tata Group-backed automobile giant informed about the change of name and scrip code from Tata Motors Limited to Tata Motors Passenger Vehicles Limited. This is the PV unit under the demerger scheme.

It said, "Consequent upon change in its name, the trading symbol/ticker of the company on the stock exchanges shall be changed to reflect the new name. The trading symbol of the company on BSE and NSE will come into effect from October 24, 2025. The revised scrip ID/symbol on BSE and NSE will stand changed from TATAMOTORS to TMPV. All relevant historical data/information of the company shall be under the new scrip ID/Symbol, viz, TPMV."

Tata Motors Passenger Vehicles business include passenger cars, investment in the electric vehicles business and Jaguar Land Rover. The change of name to Tata Motors Passengers Vehicles from Tata Motors has been taken on records by the Ministry of Corporate Affairs on October 13th.

The Demerger Impact On Tata Stock:

As part of the demerger, Tata Motors restructured its businesses and management, which came into effect on October 1st. However, the record date to identify the eligible shareholders to receive 1:1 shares of both the Tata Motors PV and CV units was fixed on October 14th. During the record date, Tata Motors' stock price adjusted to below Rs 400 compared to the pre-demerger price level of Rs 660.90 on October 13th.

On the record date, Tata Motors' shares crashed nearly 43% from pre-demerger levels. However, these declines are just unrealized profit and loss which will be adjusted after TML Commercial Vehicles listing.

Since the record date, Tata Motors' stock price has mostly risen. It's currently up by 3.4% from October 14th.

Will JLR Impact Tata Motors PV?

Recently, BofA Securities and BofA's analysts signalled concerns related to JLR, which makes up about 45% of Tata Motors PV valuation. According to them, the drawbacks for JLR are --- the latest cyberattack; US tariffs impact on imported parts; and continued weak demand in markets like Europe and China. They also believe JLR's balance sheet may come under great stress, while its profit margins will require addressing.

Hence, these analysts have issued "Downgrade" on TMPV due to its heavy reliance on JLR and its overseas performance.

Also, analysts at SBI Securities stated that any potential upside in TMPVL share price will likely be correlated to a surge in volume and profitability from JLR, as their fortunes rest on JLR.

Tata Motors Demerger Allotment:

TML Commercial Vehicles has announced the allotment of 368,233,1373 fully paid equity shares of face value of Rs 2/- each to the equity shareholders of the Company in the ratio of 1:1 pursuant to the Scheme.

Also, TMLCV has declared cancellation and reduction of the entire pre-Scheme paid-up share capital of TMLCV comprising 5,00,000 (Five Lakh) fully paid-up equity shares of Rs 2/- each, which were entirely held by the Company.

TML Commercial is expected to list in 45 days since record date, hence, sometime during November.

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