&format=webp&quality=medium)
Why Tata Motors Share is Falling Today: Shares of Tata Motors fell nearly 40 per cent in early trade on Tuesday, opening at Rs 400 on the Bombay Stock Exchange, after the stock began trading ex-demerger value. The decline reflects the separation of its commercial vehicles (CV) business into a new listed entity—Tata Motors Commercial Vehicles Ltd (TMLCV).
The shares of Tata Motors were discovered at a price of Rs 400 apiece on NSE on October 14, marking a drop of 39.5 per cent (or Rs 260.75 per share) from its previous closing price after a special pre-open session on the stock exchanges. The stock has now adjusted to the demerger of its commercial vehicle business.
October 14 marks the record date for Tata Motors’ long-awaited demerger, splitting the automaker into Tata Motors Passenger Vehicles Ltd (TMPV) and Tata Motors Commercial Vehicles Ltd (TMLCV). Shareholders holding Tata Motors shares as of October 13 will receive one share of TMLCV for every share held.
The listing date for TMLCV has not been finalised yet. However, Tata Motors stated in a recent regulatory filing that the listing process typically takes 45–60 days after filing with the stock exchanges. This means the TMLCV listing could take place by mid-November 2025, subject to regulatory approvals.
During this interim period, the newly allotted TMLCV shares will remain in shareholders’ demat accounts but will not be available for trading until listing permissions are granted by both BSE and NSE.
Following the demerger, the parent company, Tata Motors Passenger Vehicles Ltd (TMPV), will include passenger vehicles, electric vehicles, and Jaguar Land Rover (JLR) operations. From today, Tata Motors shares are trading without the value of its CV business, leading to a notional price adjustment.
All existing F&O contracts for Tata Motors expiring in October, November, and December were settled on Monday and will be reintroduced with revised lot sizes starting Tuesday.
Shareholders will hold equity in two entities—TMPV and TMLCV. The cost of acquisition for both will be communicated later for tax and accounting purposes. Analysts expect near-term volatility as the stock stabilises under the new structure.