Tata Group Shakes Up Dalal Street: Demerger and Stock Split Details Revealed

Dalal Street is buzzing with activity as two major companies from the Tata Group—Tata Motors and Tata Investment Corporation—have made significant corporate announcements. These strategic moves, involving a demerger and a stock split, have captured the attention of the investment community. Let’s break down what’s happening and what it means for you.

Tata Motors Demerger: What Shareholders Need to Know

After much anticipation, Tata Motors has officially announced the details of its strategic demerger. The company will be split into two distinct, publicly listed entities: one focusing on its robust commercial vehicles (CV) business and the other on its fast-growing passenger vehicles (PV) business.

The record date for this demerger is set for Tuesday, October 14, 2025. If you hold Tata Motors shares on this date, you will be eligible to receive shares in the newly formed commercial vehicles company.

The share entitlement ratio is straightforward: for every one share held in Tata Motors, you will receive one share in the new CV entity, which will be named TML Commercial Vehicles Ltd (TMLCV). The existing Tata Motors entity, which includes the prestigious Jaguar Land Rover (JLR) brands and the thriving electric vehicle (EV) segment, will be renamed Tata Motors Passenger Vehicles Ltd.

This demerger is designed to unlock shareholder value by allowing each business to pursue its own growth strategy with greater focus. The market has responded positively, with Tata Motors’ stock showing strong gains following the announcement.

Tata Investment Corp’s 1:10 Stock Split Sparks Major Rally

While the demerger was significant, Tata Investment Corporation truly captured the market’s attention. The company’s stock surged by as much as 12% in a single day, hitting a new 52-week high.

The catalyst for this rally is the company’s announcement of a 1:10 stock split. The record date for this corporate action is also Tuesday, October 14, 2025.

A stock split involves dividing existing shares to increase the total number of shares available. In this case, for every one share of Tata Investment Corporation you own, you will receive ten shares. Consequently, the face value of each share will be reduced from ₹10 to ₹1.

The primary goal of a stock split is to enhance liquidity and make shares more affordable for retail investors. A lower share price can attract a wider base of investors, potentially leading to higher trading volumes.

Adding to the positive sentiment is the highly anticipated Initial Public Offering (IPO) of another Tata Group entity, Tata Capital. Tata Investment Corporation holds a stake in Tata Capital, and the upcoming IPO is expected to unlock significant value for its shareholders.

Key Dates and Your Next Steps as an Investor

• October 6-8, 2025: The Tata Capital IPO will be open for subscription.
• October 14, 2025: This is the crucial record date for both the Tata Motors demerger and the Tata Investment Corporation stock split.
• Post-October 14: Keep an eye out for the listing of TML Commercial Vehicles Ltd on the stock exchanges, which is expected in the weeks following the record date.

The latest announcements from the Tata Group have created compelling opportunities and excitement in the market. As an investor, it is essential to understand the mechanics of these corporate actions to make well-informed decisions that align with your financial goals.

Disclaimer: This article is for informational purposes only and should not be considered investment advice. Please conduct your own research before making any investment decisions.