Tata Motors has completed its long-awaited demerger, formally separating its Passenger Vehicles (including Jaguar Land Rover) and Commercial Vehicles businesses into two independent listed entities. The move marks a major milestone in the company’s effort to create focused, agile organisations aligned with their respective growth priorities.

Timeline

1st Oct - Demerger announced
14th Oct - Record date for demerger
12th Nov - New entity (TMLCV) listed | Buy price updated as per indicative CoA (60% : 40%)
13th Nov - Final CoA announced (68.85% : 31.15%)
18th Nov - Buy price adjusted as per final ratio

How does this affect your portfolio?

Tata Motors has now published the final Cost of Acquisition (COA) split between its two entities. Based on the company’s disclosure, your original investment cost is apportioned as follows:

Tata Motors (Passenger Vehicles + JLR): 68.85%
TML Commercial Vehicles Ltd: 31.15%

Your average buy prices for Tata Motors (PV + JLR) and TMLCV have been updated to reflect this final allocation. Your total investment value remains unchanged — it’s simply distributed across two separate stocks in proportion to the official ratio.

Understanding the Demerger

A demerger is a form of corporate restructuring where a company separates one or more of its divisions into new, independently listed entities. Shareholders of the original company receive shares in the new entity in proportion to their existing holdings.

In this case, for every 1 share of Tata Motors you held before the demerger, you received 1 share of TML Commercial Vehicles Ltd.

This change does not affect the overall value of your investments. After the demerger, the exchanges adjusted the prices of both companies to reflect their relative business values. While the price of Tata Motors may appear lower post-demerger, the combined market value of Tata Motors and TMLCV remains equivalent to your earlier holdings.

About the Cost of Acquisition (COA)

When a demerger takes place, the cost of acquisition of the original company’s shares is split between the two resulting entities based on a ratio determined by the company — typically linked to the book value of assets transferred.

The official COA split announced by Tata Motors now enables accurate reporting of cost, gains, and returns in your portfolio.

No Action Needed

Your Groww portfolio has already been updated to reflect the official values. The adjustment is automatic, and your total investment value remains unchanged. This structural change reflects a corporate realignment, not a change in ownership or capital value.

Summary

Tata Motors has demerged into two listed companies: Tata Motors (PV + JLR) and TMLCV (Commercial Vehicles).
You now hold shares in both companies.
Your total investment value is the same as before the demerger
Your Groww portfolio is now reflecting the final official announced CoA ratio of 68.85 : 31.15
The values have been automatically updated and require no action from your side

You can relax knowing your investments are safe - the price changes are simply a reflection of the company’s restructuring. We’ll keep monitoring Tata Motors’ announcements and update your portfolio as soon as the official COA details are shared.

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