Tata Motors has a legacy of stock splits that improved the accessibility of shares for retail investors. These actions contain important splits in 1996 and 2011, as well as recently in 2025, and demergers are sometimes misinterpreted as a split, reforming shareholder value without overall holdings. In this blog, we will get to know about the Tata Motors stocks split, trading timeline, history, important dates, share price and market, tax implications, and much more.
About Tata Motors
Tata Motors was founded in the year 1945, and its headquarters is situated in Mumbai, India. Its first product was launched in 1954, which was a commercial truck. Its key milestones are the Tata Indica (1998, first Indian car) and; Jaguar Land Rover acquisition (2008). Tata Motors deals in the segments of Commercial vehicles (trucks, buses), Passenger vehicles, EVs, and JLR. Its revenue shares are Domestic sales, exports, and luxury brands.
In today’s times, it deals in two kinds of vehicles, namely commercial vehicles and passenger vehicles. If we talk about the commercial vehicle, it includes trucks and buses; on the other hand, passenger vehicles include EVs and JLR. Tata Motors has a market cap of Rs 3 Lakh Crore.
Aspect
Details
Founded
1945 by Tata Group
Headquarters
Mumbai, India
First Product
Commercial truck (1954)
Key Milestones
Tata Indica (1998, first Indian car); Jaguar Land Rover acquisition (2008)
Splits the business into independent listed companies
Purpose
Boost liquidity, affordability for retail investors
Unlock value via sum-of-parts, business focus
Share Ratio Example
5:1 (1 share becomes 5)
1:1 (1 new share per existing share)
Company Structure
Remains a single entity
Creates two+ entities (TMPV + TMLCV)
Market Cap Impact
Unchanged overall
Potentially higher via independent valuations
Share Price Effect
Drops proportionally (e.g., ₹756 to ₹138)
Both entities trade separately post-listing
Cost Adjustment
Automatic proportional
Based on the COA ratio, once announced
Tax on Event
None
None; tax on future sales only
Investor Action
None needed
Hold till record date for new shares
Historical Example
Tata Motors 2011 (5:1)
Tata Motors 2025 (CV demerger)
What changes for you?
Aspect
What Happens
Your Action Needed
Share Holdings
Keep all original Tata Motors shares + receive 1:1 TMLCV shares
None – automatic if held by Oct 13, 2025
Demat Account
TMLCV shares credited within 30-45 days; CDSL email notification
Check the demat post-crediting
Trading
Both stocks trade independently post-listing
Can buy/sell each separately
Cost Basis
Average price adjusted per COA ratio (e.g., 60:40 split)
None – broker handles automatically
Portfolio Value
No immediate change; potential sum-of-parts upside
Monitor independent performance
Tax Impact
None on receipt; original purchase date carries forward
None until you sell
Investment Strategy
Choose EV/JLR focus (TMPV) or commercial vehicle stability (TMLCV)
Rebalance portfolio as needed
Cash Requirement
Zero – pure spin-off, no dilution
None
Conclusion
The Tata Motors stocks splits in the years 1996 and 2011 showed the shared ownership and, importantly, boosted liquidity and participation of retail while crucial growth levels. In 2025 demerger increases the legacy by developing two entities that is Tata Motors Passenger Vehicles with EV and JLR. Tata Motors has a market cap of Rs 3 Lakh Crore.
Disclaimer: The above information is only for informational purposes, so not be regarded as financial, investment, or legal advice. The prices may change as per the market. Readers of this blog are advised to always consult a financial advisor before making any investment. The blog and author do not guarantee the accuracy.
