Tata Motors Gets New Name After Dividing Into Two Companies
The National Stock Exchange announced this week that Tata Motors will rename itself beginning October 24. The firm will be known as Tata Motors Passenger Vehicles Limited, and its traders will employ a new symbol “TMPV” in lieu of the previous “TATAMOTORS” code. This is the culmination of a significant business break-up months in the pipeline.
The news broke in an October 16 official notice, ending a much-awaited split of two vastly different halves of the same business. One assembles cars for families, the other constructs trucks and buses for companies. Holding on to them anymore did not make sense, executives said this past spring.
Shareholders Get New Commercial Vehicle Company Shares
People who owned Tata Motors stock got a bonus on October 14. For every share they held, they received one matching share in the new commercial vehicle company called Tata Motors Commercial Vehicles Limited. The government approved the new company name on October 13, making everything official.
The price per share fell from ₹660.75 to ₹400 when the shares began trading after the split. That may sound terrible, but in fact it is logical. The commercial vehicle segment was valued at around ₹260 per share, and therefore, when it got split, the remaining passenger vehicle company logically reflected a lower price. Shares were trading at around ₹396 by October 16.
Over 368 crore shares were issued for the commercial vehicles firm. These shares would appear in investors’ accounts between 30 to 45 days. Both firms should begin trading on the bourses by mid-November, having two distinct stocks where they had only one earlier.
Experts See Good Things Ahead for Both Businesses
Financial professionals opine that the split will make shareholders wealthier. ICICI Securities feels the commercial vehicle division may be valued at ₹300 a share, while the passenger vehicle business may touch ₹450 to ₹500.
“This is one of the most highly anticipated splits in recent times,” said Pankaj Pandey of ICICI Securities. “Both businesses are going in divergent directions, so allowing them to grow independently should allow them to grow faster.”
The commercial vehicle business is off to a good start. It owns 37% of the truck and bus market in India and earns a healthy margin. Meanwhile, the passenger vehicle business receives most of its revenues from Jaguar Land Rover, the British luxury franchises that Tata Motors acquired years earlier. That business should increase 8 to 10% over the next few months.
SBI Securities values the commercial vehicle business at ₹320 to ₹470 a share. The firm aims to acquire a large European truck manufacturer for €3.8 billion, which could double or triple its size by 2027. The acquisition would introduce new technology for electric and alternative fuel trucks.
News at a Glance
- Tata Motors becomes Tata Motors Passenger Vehicles Limited on October 24 with a new ticker symbol TMPV
- Shareholders were given one share in the commercial vehicle company for the share in Tata Motors held on October 14
- Stock price readjusted from ₹660.75 to ₹400 after demerger to account for business unbundling
- Commercial vehicle company has 37% market share in India and is in plans for €3.8 billion European acquisition
- Both companies hoped to list independently on the stock exchanges by mid-November 2025
FAQs
- What happens to my old Tata Motors shares?
Your shares are instantly converted into Tata Motors Passenger Vehicles Limited shares, and you receive corresponding commercial vehicle shares as well.
2. Why did the share price fall so drastically after October 14?
The price captures only the passenger vehicle business now, with the commercial vehicle value isolated.
3. Which of the two companies will be larger post-split?
The commercial vehicle business dominates more than a third of India’s market, whereas the passenger market has luxury brands.
4. Will both firms list on the same exchanges?
Yes, they will list on NSE and BSE from about mid-November 2025.
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