Tata Motors demerger: TMPV shares begin trading after name change
The article details Tata Motors' demerger, with Tata Motors Passenger Vehicles (TMPV) shares now trading separately from October 24, 2205. This restructuring divides commercial and passenger vehicle operations (including EVs and JLR) into distinct listed entities, aiming for operational freedom.
New Delhi: The shares of Tata Motors have started trading in the name of Tata Motors Passenger Vehicles (TMPV) from October 24, 2205. This marks the formal completion of the process of changing the name of the company after the recent demerger. The BSE had already informed the trading members that the change would come into effect from Friday, changing the Scrip ID on the Bolt Plus system and the abbreviation from 'Tata Motors Limited' to 'TMPV'.
The name change is part of a comprehensive restructuring plan under which Tata Motors is dividing its Commercial Vehicle (CV) and Passenger Vehicle (PV) operations into two separate listed companies. As per the approved scheme, the commercial vehicle business will continue under the name of parent Tata Motors. Whereas the passenger vehicles business — which includes electric vehicles and Jaguar Land Rover (JLR) — will operate under the newly formed Tata Motors Passenger Vehicles.
Tata Motors demerger
The demerger took effect on October 1, setting a 1:1 share ratio, whereby shareholders would get one share in the commercial company in exchange for each share they had in Tata Motors. The record date for this allotment was October 14.
Tata Motors first announced its demerger plan in March 2024, citing objectives such as operational freedom, faster decision-making and better capital allocation. The passenger vehicle unit will now include domestic cars, electric vehicles and JLR businesses, which are recognized as key growth engines of the company.
Tata Motors Stock performance
After the record date, the share price of Tata Motors declined by about 40 percent, which reflects technical adjustment rather than price reduction, because now the valuation of the two entities is done independently. The commercial vehicle business is expected to be listed separately in the coming weeks until regulatory clearances are granted.
The launch of the TMPV marks a new phase for Tata Motors, which officially separates its long-standing commercial vehicle operation from the passenger and electric vehicle segments.
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