Tata Motors Demerger: Listing Date, Share Price, What’s Next

Tata Motors Ltd. is gearing up for a key milestone as it prepares to list its Commercial Vehicles (CV) business separately — a move that will reshape one of India’s largest auto companies.

From Wednesday, Tata Motors will trade ex-commercial vehicles, marking the separation of its two major business arms — Passenger Vehicles (PV) including Jaguar Land Rover, and Commercial Vehicles. Post-demerger, the existing listed company will be renamed Tata Motors Passenger Vehicles Ltd., while the newly listed entity will carry the Tata Motors Ltd. name, representing the CV business.

Shareholders recorded as of Oct. 14, 2025, record date will receive one share of the demerged CV entity for every one share held in Tata Motors. The CV unit’s listing is likely in November, subject to regulatory approvals.

The demerger aims to unlock value across Tata Motors’ diverse businesses — each with distinct growth and profitability profiles. The CV division contributes around 25% of consolidated profits, despite accounting for only 17% of total revenue, underscoring its higher-margin profile.

One key question for investors is how the Tata Motors share price will adjust once the CV business is separated. Based on brokerage estimates and industry valuation benchmarks:

• Commercial Vehicles Business has an Ebitda estimated at Rs 8,841 crore and is valued at 13 times EV/Ebitda, implying a per-share value of Rs 312.

• Passenger Vehicles Business (excluding JLR) is valued at 12 times EV/Ebitda, implying a per-share value of Rs 109.

• JLR Business, which is valued at 2x EV/Ebitda, implying a per-share value of Rs 244. Post-demerger, the combined value of the Passenger Vehicles and JLR businesses — which will remain in the existing listed company — is estimated at around Rs 356 per share, compared to the current market price of roughly Rs 670.

This suggests that once the CV entity is separately listed, Tata Motors’ current stock could see a proportional price reduction — roughly equivalent to the CV unit’s implied value.

Brokerages currently value both the CV and PV businesses in the 10–13x EV/Ebitda range, with the JLR business trading much lower at 1.7–2x, reflecting uncertainties around global trade disruptions, tariffs, and the impact of recent cyberattacks on production.

The demerger will enable sharper business focus and independent capital allocation for both entities. Analysts expect the CV listing to unlock hidden value by allowing investors to value the domestic and global businesses separately, particularly as the CV business benefits from an uptick in infrastructure spending and fleet replacement cycles.

While the demerger may lead to short-term price adjustments, it marks a strategic step in Tata Motors’ long-term restructuring. The standalone listings will allow investors clearer visibility into the company’s operational performance across segments, potentially leading to better market discovery and valuation rerating over time.

If markets align with current valuation estimates, Tata Motors’ shareholders could soon own two strong, independently listed auto majors — each poised for its next phase of growth.