Tata Motors Slips Below ₹700: An Investor’s Guide to the Demerger and Key Dates

MUMBAI: Shares of auto major Tata Motors have come under heavy selling pressure, tumbling 6.8% over the last four trading sessions as the record date for its much-anticipated business demerger approaches. The stock fell below the psychologically important ₹700 mark on Wednesday, closing at ₹689.3 on the BSE.

The decline is largely driven by investor and trader adjustments ahead of the planned split of the company into two separate listed entities: one for its commercial vehicle (CV) business and another for its passenger vehicle (PV) business. Investors are also closely watching the phased restart of production at its UK-based luxury arm, Jaguar Land Rover (JLR), which commenced on October 8 after a halt due to a cyber incident.

For shareholders, this is a pivotal moment. Here’s everything you need to know about the demerger.

What is the Demerger Plan?

Tata Motors is undertaking a 1:1 demerger, which will result in two independently listed companies, allowing for a more focused approach to each business vertical.

1. TML Commercial Vehicles (TMLCV): This entity will house the entire commercial vehicle business, including trucks and buses.
2. Tata Motors Passenger Vehicles (TMPV): This entity will consist of the passenger vehicle portfolio, including cars, SUVs, electric vehicles, and the prestigious Jaguar Land Rover.

For Shareholders: Under the approved scheme, for every one share of Tata Motors held, an investor will receive one share of the new TML Commercial Vehicles (TMLCV) entity. Your existing Tata Motors share will then represent the Passenger Vehicles business.

Key Dates for Investors to Watch

• October 10, 2025 (Record Date for NCDs): This is the date for identifying eligible debenture holders for the transfer of ₹2,300 crore worth of Non-Convertible Debentures to the new TMLCV entity.
• October 14, 2025 (Record Date for Shares): This is the most crucial date for shareholders. You must have Tata Motors shares in your demat account by the end of this day to be eligible to receive shares of the new TMLCV company.
• October 14, 2025 (Ex-Date): On this day, the share price of Tata Motors will adjust to reflect the value of the demerged commercial vehicle business.

How Will the Demerger Affect Your Portfolio?

Initially, the total value of your investment will remain the same. However, after the demerger process is complete and TMLCV is listed on the stock exchanges, you will see two separate stocks in your demat account instead of one:

• Tata Motors Passenger Vehicles (your original holding, renamed)
• TML Commercial Vehicles (the new shares you receive)

Trading Restrictions Now in Effect

To curb excessive volatility and speculation, trading restrictions on Tata Motors stock came into effect from October 8, 2025.

• Traders will not be able to create new buy positions in the Futures & Options (F&O) segment or under the Margin Trading Facility (MTF).
• However, existing positions can still be managed or squared off.
• Normal trading will resume once the demerger process is concluded.

Market experts advise investors to follow official announcements from Tata Motors and avoid taking new leveraged positions until the restrictions are lifted. Once both entities are listed, shareholders can review their portfolios to make any necessary adjustments.

(Disclaimer: Recommendations and views on the stock market given by experts are their own. These opinions do not represent the views of the southindiapulse.com.)