Tata Motors Demerger Buzz: Share Price Zooms as Investors Eye Next Big Move!

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Tata Motors Demerger Buzz

The Indian auto major Tata Motors has been at the center of attention this week as its long-awaited Tata Motors Demerger takes effect. The development has set Dalal Street abuzz, triggering massive trading activity and sparking curiosity among millions of investors.

Latest Tata Motors Share Price Update

As of October 15, 2025 (2:59 PM IST), Tata Motors share price is ₹388.60, marking a minor dip of around 1.7% from the previous day’s adjusted close of ₹395.45. Following the demerger, the company’s shares opened at ₹399 on October 14—down nearly 40% from Monday’s pre-demerger level of ₹660.90—a technical adjustment reflecting the separation of its commercial vehicle division.​

Despite the initial plunge, analysts describe the fall as a mathematical adjustment, not a loss of investor wealth. Market capitalization now stands at approximately ₹1.43 lakh crore.​

The Structure of the Tata Motors Demerger

The Tata Motors Demerger, effective October 1, 2025, officially separated the company’s Commercial Vehicle (CV) business into a new entity — TML Commercial Vehicles Limited (TMLCV) — while the Passenger Vehicle (PV) division continues under Tata Motors Passenger Vehicles Limited.​

Under the approved scheme, every shareholder receives 1 fully paid-up TMLCV share (₹2 face value) for each Tata Motors share held on the record date of October 14, 2025.​

TMLCV is expected to be listed within 60 days, likely by November 2025, and analysts estimate its initial trading range between ₹320–₹470 per share.​

Why the Demerger Matters

The Tata Motors Demerger is seen as a strategic move to sharpen business focus and unlock value. By letting each division—commercial and passenger vehicles—operate independently, management can ensure faster decision-making and targeted growth.

  • The new passenger vehicle (PV) business will emphasize electric mobility, premiumization, and global expansion through Jaguar Land Rover (JLR).
  • The commercial vehicle (CV) division, now TMLCV, will focus on infrastructure, logistics, and industrial transport, benefiting from the government’s renewed emphasis on Make-in-India and road connectivity.

Brokerages like Nomura have already set post-demerger price targets near ₹367 for the PV entity and ₹365 for TMLCV.​

Market Reaction and Investor Outlook

Initially, Tata Motors shares experienced volatility after going ex-demerger. However, experts assert that this correction is temporary. The adjusted prices already reflect the split between the two segments. Positive sentiment persists as the Tata Motors Demerger is expected to unlock long-term shareholder value and improve operational clarity.​

In the near term, traders anticipate mild fluctuations as both entities establish standalone investor confidence. Over the medium term, the restructuring may attract new institutional investors and boost sectoral efficiency.

What’s Next for Shareholders

Investors holding Tata Motors shares on October 14, 2025, will automatically receive allotments of TMLCV shares once regulatory clearances are complete. The process is expected to be finished within 30–45 days, with separate NSE and BSE listings to follow.​

Going forward, analysts recommend monitoring two key factors:

  1. The financial performance of both PV and CV entities post-segregation.
  2. Market response following the TMLCV listing in November 2025.

In summary, the Tata Motors Demerger marks a turning point for the Indian automotive sector, positioning each division for independent growth. As the share price stabilizes around ₹388–₹395 post-split, investors are optimistic about the company’s next growth phase and the upcoming listing of TMLCV.

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