Tata Motors Demerger: What INDmoney Investors Need to Know

Tata Motors has completed its demerger into two separately listed companies to simplify its business structure and unlock long-term value. If you hold Tata Motors shares in your INDmoney portfolio, here is a clear and easy explanation of what this means for you.

1. What has changed

Tata Motors is now split into two independent listed entities:

Record Date: 14 October 2025
Demerger Ratio: 1:1
You will receive 1 TMLCV share for every 1 Tata Motors share you held as of the record date.

2. What this means for your holdings

Here’s a simple illustration to explain the impact on your holdings after the demerger.
(This is an example for understanding only.)

Your value does not change, it simply gets split between two companies.

You can check your actual updated numbers directly on the INDmoney app.

3. Official COA Ratio Announced

Tata Motors has released the Cost of Acquisition (COA) ratio. This determines how your existing cost will be split between TMPV and TMLCV.

Official COA Ratio

Example (for understanding only)

If you originally bought 100 Tata Motors shares at ₹1,000 each (₹1,00,000 total investment), here’s how your cost will now split:

Your total investment value stays the same.
Only the cost allocation changes.

These updated average prices will be reflected automatically on the INDmoney app.

4. Trading timeline

Here’s how the trading schedule looks for both stocks:

Tata Motors (Existing Stock – TMPV)

• 14 Oct 2025
  
  • Special pre-open session: 9:00 AM – 9:45 AM
  • Regular trading: 10:00 AM – 3:30 PM

Tata Motors Commercial Vehicles (TMLCV)

• New shares will be credited to your demat within 30–45 days
• You will receive an email from CDSL once shares are credited
• TMLCV will list separately on NSE and BSE after regulatory approvals
  
  • The exchange will announce the listing date through a circular

F&O Contracts

• Existing F&O contracts (Oct, Nov, Dec expiries) expired early on 13 Oct 2025
• Fresh contracts with revised lot sizes were introduced from 14 Oct 2025

5. Tax implications

Your taxation rules continue as before:

• Your original purchase date for Tata Motors carries forward for both TMPV and TMLCV
• Tax applies only when you sell
  
  • Long-term gains (>12 months): 12.5% on gains above ₹1.25 lakh
  • Short-term gains (<12 months): 20% tax

Your cost is only reallocated, not reset.

6. Key takeaways

• You receive 1 new TMLCV share for every 1 Tata Motors share you held
• Your average buy price and chart price will reduce — this is normal
• Total investment value remains the same
• New TMLCV shares will show in your demat in 30–45 days
• Your tax holding stay intact 
• INDmoney will automatically update your portfolio with all changes

Disclaimer

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. The securities are quoted as an example and not as a recommendation. This is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell or subscribe for securities. INDStocks SIP / Mini Save is a SIP feature that enables Customer(s) to save a fixed amount on a daily basis to invest in Indian stocks. INDstocks Private Limited (formerly known as INDmoney Private Limited) 616, Level 6, Suncity Success Tower, Sector 65, Gurugram, 122005, SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428. Refer to https://indstocks.com/pricing?type=indian-stocks; https://www.indstocks.com/page/indian-stocks-sip-terms-and-condition for further details.

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