Tata Motors Demerger: What Investors Need to Know

Tata Motors has split its Commercial Vehicle business and Passenger Vehicle business (including Electric Vehicles and Jaguar Land Rover) into two distinct companies.

The Commercial Vehicle arm is now under TML Commercial Vehicles Limited (TMLCV) whereas the Passenger Vehicle arm remains under Tata Motors.

Key Date:

Record Date for Shareholders: 14th October, 2025

Impact on Shareholders:

1. Portfolio:

a. For every one share of Tata Motors held, shareholders will receive one share of TMLCV. No additional investment is required to receive these shares.

b. After the demerger, equity shareholders will hold shares in two companies – Tata Motors and TMLCV.

c. There will be a drop in the portfolio on record date.

2. MTF Positions:

a. Customers can continue to hold existing MTF Positions of Tata Motors during the demerger.

b. Margin requirement will increase to 60% effective 10th October, 2025 (Friday EOD).

c. Customers need to actively monitor the existing positions and maintain sufficient margin to avoid square off of existing positions.

d. A special price discovery session will be held on 14th October, 2025 (Tuesday), from 9:00 AM to 10:00 AM. Buying and Selling of Tata Motors stock through MTF will not be allowed during this session.

3. F&O Positions:

A. Expiry of Existing Contracts

a. All existing Tata Motors F&O contracts with expiry on 28th October, 2025, 25th November, 2025, and 30th December, 2025 will now expire on 13th October, 2025 (Monday).

b. These contracts will be physically settled if not squared off before market hours on October 13, 2025.

c. ICICI Direct system will attempt to close positions if not marked for delivery:

i. Long Options – by 12:00 PM

ii. Futures & Short Options – by 2:30 PM

B. Introduction of New Contracts

a. Fresh F&O contracts will be available from October 14, 2025.

b. Expiry dates for these contracts remain unchanged: 28th October, 25th November, and 30th December, 2025.