1:1 Split Record Date On October 14: Tata Motors' Latest Demerger Update; How To Be Eligible & Should You Buy?

Tata Group-backed automobile giant, Tata Motors share price will be in focus next week as the record date for its 1:1 demerger nears. The mega auto player is going to split into two separate entities namely TML Commercial Vehicles and Tata Motors Passenger Vehicles, and to determine eligible shareholders the record date is fixed on October 14. Ahead of the demerger, Tata Motors share price dropped between 4-5% during last week's sessions. In the latest development, Tata Motors has announced listing of its demerged business.

Tata Motors Demerger Update:

According to the regulatory filing, here are 8 key updates on the demerger:

1. As per the scheme of arrangement, the commercial vehicles business undertaking of TML has been demerged into TMLCV and TMPV stands amalgamated with TML. The Scheme is effective from October 1, 2025 and the Appointed Date is July 1, 2025.

2. Accordingly, TML will continue to be a listed entity. Meanwhile, Tata Motors Limited will change its name to Tata Motors Passenger Vehicles Limited and shall carry on the passenger vehicles business including its investments in Electric Vehicle business and JLR.

3. TML Commercial Vehicles will be renamed as Tata Motors.

4. On the Record Date, the share price of TML shall be adjusted to take into account the demerger of the commercial vehicles business, through a price discovery mechanism of the stock exchanges.

5. Upon finalization of the list of eligible Shareholders of TML, the shares in TMLCV shall be allotted and thereafter, such shares shall be listed on the Stock Exchanges, viz., BSE and NSE.

6. During the period from the date of allotment of shares by TMLCV upto the date of listing on BSE & NSE thereof, the shares of TMLCV shall not be available for trading on the Stock Exchanges.

7. The process of obtaining Listing and Trading permission generally takes 45-60 days from the date of filling necessary application with Stock Exchanges.

8. Guidance on 'Cost of Acquisition' of equity shares in TML and equity shares in TMLCV will be communicated to you in due course.

Tata Motors Demerger Record Date:

Tata Motors is going to split in the ratio of 1:1. To identify eligible shareholders for 1:1 demerger, Tata Motors has fixed October 14th as the record date. This means that only those investors will be issued and allotted 1 (One) share of TMLCV (face value of INR 2/- each fully paid up), for every 1 (One) share of the Company (face value of INR 2/- each fully paid up) of the same class of shares outstanding and as held by them in the Company on the "Record Date".

Last week, on October 10th, the company identified eligible shareholders for Non-Convertible Debentures ("NCD") that is going to be transferred into TMLCV. Notably, Tata Motors is also merging its NCDs worth Rs 2,300 crore with TML Commercial.

After this, the said equity shares to be allotted by TMLCV are proposed to be listed with BSE Limited and the National Stock Exchange of India Limited, subject to necessary regulatory approvals.

Tata Motors Share Price:

After market hours on BSE, Tata Motors share price closed at Rs 679.05 apiece, down marginally. The large-cap stock is in a losing streak for sixth consecutive session. The company's market value is at Rs 2,50,048.71 crore.

Last week's sessions, Tata Motors dropped by nearly 4.4% on BSE. The stock's 52-week high and low is currently at Rs 943.95 apiece and Rs 542.55 apiece respectively.

Tata Motors Shares Recommendation:

The consensus recommendation from 27 analysts for Tata Motors Ltd. is HOLD, as per Trendlyne data. Of the total, 7 analysts suggested STRONG BUY and 5 analysts recommended BUY. The average target price is at Rs 762 apiece, hinting at over 12% potential upside ahead.

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