Tata Motors Shares Fall Ahead of Demerger Record Date; Stock Down 1.24%

Mumbai, October 13, 2025 – On Monday, Tata Motors Limited (NSE: TATAMOTORS, BSE: 500570) shares fell 1.24% to ₹670.50 in early trades. The company’s demerger record date is scheduled for October 14, 2025.

At 12:10 pm, the company’s share was trading at ₹668.15, down ₹10.80 (1.59%) from its previous close of ₹678.95. The stock opened at ₹679 and had an intraday low of ₹665.20 before recovering partially. Trading volume stood at over 91.8 lakh shares traded worth ₹614.91 crore.

Final Session Before Demerger

Today is the last trading day before Tata Motors’ anticipated demerger. The stock will trade “ex-demerger” starting from October 14, and shareholders will receive one share in the new Commercial Vehicles company for every share of Tata Motors they own.

Structure Of The Demerger

Following the demerger, the existing company will now be called Tata Motors Passenger Vehicles Ltd (TMPVL), while the newly created Tata Motors Ltd.-Commercial Vehicles will encompass only the CV business. The share price of Tata Motors will automatically adjust through the exchange’s price discovery mechanism to remove the value of the CV business.

Listing And Trading Timeline

Tata Motors anticipates the listing and trading of the new company to be approved in 45–60 days from the share allotment.’ During this period, the shares of the demerged company will not be able to trade as per regulatory requirements.

JLR Division Challenges

In the meantime, the company continues to address operational problems at Jaguar Land Rover (JLR) due to a cyberattack that could result in £2 billion in costs, possibly exceeding JLR’s profits in FY25.

About Tata Motors

Tata Motors is one of the largest automobile manufacturers in India and is a flagship of the Tata Group, producing cars, trucks, buses, and defense vehicles. Tata Motors is a major constituent of the Nifty 50 index.

Outlook:

The demerger of Tata Motors is likely to provide value for shareholders in the medium term. However, some near-term volatility may remain as markets adjust to the realignment of share prices following the demerger, along with JLR’s operational uncertainties.

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