Tata Motors shares continued their downward trend for the fifth straight session on Thursday, dropping as much as 1.8% to ₹669.00 apiece on the BSE, as investors awaited key record dates linked to the company’s long-anticipated demerger.

The Tata Motors demerger, effective from October 1, 2025, formally separates the automaker’s Commercial Vehicle (CV) and Passenger Vehicle (PV) businesses into two distinct companies, marking a major milestone in the company’s restructuring strategy aimed at unlocking shareholder value and operational efficiency.

Under the approved Composite Scheme of Arrangement, the CV business has been transferred to a new entity named TML Commercial Vehicles Limited (TMLCV), while the PV operations — including passenger cars and electric vehicles — will remain under Tata Motors, which will now be renamed Tata Motors Passenger Vehicles Limited.

Additionally, the demerger scheme includes the transfer of non-convertible debentures (NCDs) worth ₹2,300 crore to the CV entity. Tata Motors has set Friday, October 10, 2025, as the Record Date for NCD holders, determining eligible debenture holders whose securities will be transferred to TMLCV.

For shareholders, the Record Date has been fixed for Tuesday, October 14, 2025. According to the share entitlement ratio, each Tata Motors shareholder will receive one fully paid-up equity share of ₹2 face value in TML Commercial Vehicles Limited for every one share held in Tata Motors.

The demerger is expected to enhance business focus, improve capital allocation, and provide each company with greater flexibility to pursue its growth strategy. While the stock has faced short-term volatility, market analysts believe the separation could create long-term value by allowing both entities to operate with clearer strategic and financial independence.