Tata Motors shares opened at Rs 399.00 on Tuesday, down from Monday's close of Rs 660.90, following the demerger of its commercial vehicles business. The decline reflects the stock trading ex-demerger value after separating into Tata Motors Passenger Vehicles Ltd (TMPV) and Tata Motors Commercial Vehicles Ltd (TMLCV).

Key Details of the Demerger

• Shareholders receive one TMLCV share for every Tata Motors share held as of October 13.
• TMPV will encompass passenger vehicles, electric vehicles, and Jaguar Land Rover operations.
• TMLCV becomes India's largest commercial vehicle maker with a 37.1% market share.

Market Reaction and Analyst Projections

Brokerages view the split as a value unlocking move. SBI Securities projects:

• TMPV trading between Rs 285.00-384.00
• TMLCV trading between Rs 320.00-470.00

Impact on Jaguar Land Rover Operations

JLR operations were impacted by a September cyberattack, resulting in:

• 24% drop in wholesale volumes
• Estimated losses of £50 million per week
• Full production expected to resume post-Christmas

Future Plans

TMLCV plans a €3.8 billion acquisition of Iveco Group's commercial vehicle operations, expected to be completed in FY27.

Trading Details

A special pre-open session from 9 a.m. to 10 a.m. facilitated price discovery for the ex-Commercial Vehicle entity. Key trading metrics include:

Corporate Action

As part of the restructuring:

• The company's name has changed from "Tata Motors Limited" to "Tata Motors Passenger Vehicles Limited".
• The Ministry of Corporate Affairs issued a Fresh Certificate of Incorporation confirming this change.
• TML Commercial Vehicles Limited (TMLCV) is expected to change its name to "Tata Motors Limited" in due course.

This demerger represents a significant milestone in Tata Motors' strategy to create distinct, focused entities for its commercial and passenger vehicle businesses. The market's reaction and the performance of both entities in the coming days will be crucial in determining the long-term benefits of this strategic separation for shareholders.

Tata Motors Approaches Crucial Demerger Milestone

Tata Motors (ISIN: INE155A01022) shareholders are facing a pivotal moment as the company approaches its planned demerger of the Commercial Vehicles business. Monday, October 13, marks the final day for trading Tata Motors shares as a consolidated entity before the split takes effect.

Key Demerger Details

Shareholders who hold Tata Motors shares at the close of trading on Monday will be eligible to receive one share of the demerged entity for each share they own. The demerger scheme, which became effective on October 1, 2025, will result in two separate entities:

1. Tata Motors Passenger Vehicles Ltd. (existing entity)
2. Tata Motors Ltd. Commercial Vehicles (new entity)

Post-Demerger Trading and Challenges

It's important to note that shares of the newly demerged Commercial Vehicles business will not be immediately tradeable. Shareholders should expect a 45-60 day period for the listing process to complete before these shares become available for trading.

While the demerger progresses, Tata Motors faces additional challenges, particularly with its Jaguar Land Rover unit. A recent cyberattack could potentially result in costs exceeding £2 billion, adding pressure to the company's operations.

Recent Stock Performance

Tata Motors' stock has shown some volatility in recent trading sessions:

Investors and market watchers will be keenly observing how the demerger impacts the valuation and performance of both resulting entities in the coming weeks.