1:1 Split Alert: Tata Motors Stock Hits Rs 400 Ahead Of Name Change On Oct-24: What Is Final Stage In Demerger

Tata Motors share price crossed Rs 400 mark, a day before the Muhurat trading 2025. On October 20th, the automobile giant has gained by nearly 2%. This comes ahead of the company's name change to Tata Motors Passenger Vehicles on October 24.

Tata Motors shares have split in 1:1 ratio due to its demerger scheme where the main company is divided into PV and CV unit. The final stage of the demerger is when TML Commercial Vehicles will list in November as separate entity. However, the final stage of its PV unit is said to be this week with the change in scrip and name on BSE and NSE.

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At the time of writing, Tata Motors share price gained by nearly 1% to trade at Rs 399 apiece on BSE, with market cap of Rs 1,46,925.02 crore. The stock hit an intraday high of Rs 403.20 apiece in the early trade, and gained by nearly 1.7% on BSE.

Tata Motors share price has broadly hovered between Rs 390 to Rs 405 since its demerger record date on October 14. The stock price is currently trading with unrealized PNL, which will be adjusted once TML CV unit debuts on market.

Tata Motors To Tata Motors Passenger Vehicles:

As part of the demerger, Tata Motors will be changed to Tata Motors Passenger Vehicles from October 24, 2025 onward. Its scrip name will also change accordingly to TMPV on BSE and NSE.

The change in the company name and the ticker symbol is a part of the final phase of the company's restructuring plan. Under the restructuring plan, Tata Motors has formally split its Passenger Vehicle (PV) and Commercial Vehicle (CV) divisions into two independently managed entities, as per HDFC Sky blog.

Tata Motors Demerger Allotment:

Last week, in its regulatory filing, Tata Motors informed investors that TML Commercial Vehicles has announced the allotment of 3,68,23,31,373 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.

It said, "TMLCV shall take necessary steps to obtain listing and trading permission of the aforesaid equity shares, as allotted today, from BSE Limited and National Stock of India Limited in due course."

TMLCV shares are expected to list in November 2025.

How Tata Motors Demerger Will Impact Investors?

Here's an example by Arihant Plus blog, assume you own 100 shares of Tata Motors, currently trading at Rs 650, which means the value of your holding is Rs 65,000 (100 × Rs 650).

-After the demerger, you will continue to own 100 shares of Tata Motors.

-On top of that, you'll also get 100 more shares of the newly listed entity.

Now, the market will re-price these separately.

-Suppose after the split, the PV + JLR stock trades at Rs500 per share, and the CV stock trades at Rs150 per share.

-Total value = (100 × Rs500) + (100 × Rs150) = Rs65,000.

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