Tata Motors Share Price Dropped By 40%

Tata Motors shares plunged nearly 40% on Tuesday as the stock began trading ex-demerger, following the separation of its commercial vehicle division from its passenger vehicle arm. The stock opened at ₹399, down from ₹660.90 the previous day, valuing the company at about ₹1.45 lakh crore.

The company clarified that the decline was a technical adjustment reflecting the split, not an actual erosion of investor wealth. Under the demerger scheme, shareholders will receive one share of Tata Motors Commercial Vehicles Limited (TMLCV) for every one share held in Tata Motors as of the record date, October 14, 2025.

After restructuring, Tata Motors Passenger Vehicles Limited (TMPVL) will continue to trade publicly, managing the passenger vehicle, electric vehicle, and Jaguar Land Rover (JLR) businesses. The new TMLCV will later be renamed Tata Motors Limited once regulatory approvals are complete.

Trading in TMLCV shares will begin only after exchange approvals—typically within 45–60 days. Meanwhile, new F&O contracts for TMPVL have started, and investors will now hold equal shares in both TMPVL and TMLCV.