Shares of Tata Motors Ltd opened at ₹400 on the NSE, appearing nearly 39.5% lower from the previous close — but this isn’t a real crash. The decline reflects the price adjustment following the demerger of the company’s Passenger Vehicle (PV) and Commercial Vehicle (CV) businesses, which was completed today.
Why Tata Motors is showing a sharp fall
Today, October 14, marks the record date for Tata Motors’ demerger, under which the company has been split into two distinct listed entities:
- Tata Motors Passenger Vehicles Ltd (TMPVL) – will house the domestic PV business, Jaguar Land Rover (JLR), and stakes in Tata Sons, Tata Steel, and Tata Technologies.
- Tata Motors Ltd (CV division) – will now include the domestic commercial vehicle business, the Iveco partnership, and its stake in Tata Capital.
A special pre-open session from 9 AM to 10 AM was held today to discover the fair value of both entities before regular trading resumed at 10 AM. The price adjustment seen on the chart reflects the separation of the Passenger Vehicle business, which now trades independently as Tata Motors Passenger Vehicles Ltd.
Listing update
The Passenger Vehicle unit listed at ₹400 per share, aligning closely with brokerage valuations. For instance, Nuvama pegged the PV business at ₹410, while Nomura valued it at ₹367 per share.
Meanwhile, the Commercial Vehicle arm (which retains the “Tata Motors Ltd” name for now) is expected to list separately within the next 30–45 days.
In essence, the ~40% dip is purely technical and valuation-based, not due to any sell-off or negative market reaction. Once both entities trade independently, the combined value is expected to reflect the true market capitalization of the earlier unified Tata Motors stock.
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