Tata Motors Shares Face Drop near 40% (Rs. -253.50) today (October 14) from previous closing date which shares value was Rs 664.0. The drop was not for the reason of market crash, it is because of stock’s adjustment following the company’s strategic demerger of its commercial vehicle business from the passenger vehicle.
What the real reason of Tata Motor Shares Down of 40%
On Tuesday, the Tata Motors Shares open with Rs 399 on the BSE which is 39.6% drop of its earlier closing date i.e. Monday which was Rs. 660.90. The decline appeared shocking on portfolio-tracking apps, but it corresponds to Tata Motors trading ex-demerger — meaning the company’s commercial vehicle (CV) division has been spun off into a separate listed entity.
Tata Motors had said in a statement, “The Company has fixed Tuesday, October 14, 2025, as the ‘Record Date’ to ascertain eligible shareholders of the Company who shall be issued and allotted 1 (one) share (face value of ₹2/- each fully paid up) in TMLCV for every 1 (one) share (face value of ₹2/- each fully paid up) held in TML by them as on the Record Date (as per Share Entitlement Ratio under the Scheme)” reported on Upstox.
Will the Investor face Loss Value
Post-demerger, Tata Motors’ existing listing now represents only its passenger vehicle (PV) business — including Jaguar Land Rover (JLR) and its EV operations — renamed as Tata Motors Passenger Vehicles Ltd (TMPV). The CV division’s market value has been carved out and will soon trade independently on BSE and NSE.
Therefore, the 40% dip is not a real loss but an accounting adjustment. Investors’ total holding value remains largely unchanged when both TMPV and TMLCV are factored together. Once the new CV entity lists (expected in November 2025), the combined market capitalization will realign.
Key Takeaways for Shareholders of Tata Motors Shares
- Adjustment, not panic: The 40% crash is a notional adjustment. The combined value of both entities remains intact.
- New share allotment: 1:1 ratio — one new TMLCV share for each Tata Motors share held as of October 14, 2025.
- New listing: TMLCV shares are expected to begin trading in November 2025.
- TMPV focus: Passenger and premium vehicles, including Jaguar Land Rover and EVs.
- Market capitalization: Around ₹1.45 lakh crore post-adjustment.
Conclusion
The Tata Motors 40% share crash may appear alarming but is actually a technical price adjustment reflecting the company’s bold structural transformation. With renewed business focus and two dedicated listed entities — Tata Motors Passenger Vehicles Ltd and Tata Motors Commercial Vehicles Ltd — investors may witness long-term value creation once the dust settles.
Disclaimer
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