Autobayng News Team
Tata Motors shares have dropped 6.8% in four sessions to ₹689.3 on the BSE, falling below ₹700 as investors await the record date for its demerger next week.“>
Tata Motors’ shares have fallen 6.8 per cent over the past four sessions to hit a low of ₹689.3 on the BSE, slipping below the ₹700 mark as investors await the crucial record date for the company’s demerger next week.The decline comes as markets factor in the separation of its commercial and passenger vehicle businesses, along with the phased restart of production at its luxury arm, Jaguar Land Rover (JLR), following a recent cyber incident.In a new update, Tata Motors’ UK-based subsidiary Jaguar Land Rover (JLR) has begun the phased restart of its manufacturing operations from today, October 8, after a cyberattack disrupted production in early September.The company also announced a new financing solution to support the cash flow of its suppliers as it resumes operations and restores the manufacturing of its vehicles.
The auto major will be in focus till next week, with the demerger set to take effect soon and key operational updates from JLR expected to influence investor sentiment.
Tata Motors demerger record date and structure
Tata Motors is undertaking a 1:1 demerger that will result in the creation of two distinct listed entities — TML Commercial Vehicles and Tata Motors Passenger Vehicles, which will include the Jaguar Land Rover business.The company has fixed October 14, 2025, as the record date to determine eligible shareholders for the 1:1 share allotment.
Under this scheme, investors holding one fully paid-up share of Tata Motors (face value ₹2) will receive one fully paid-up share of TMLCV (Tata Motors Commercial Vehicles) with the same face value. This move aims to separate the company’s passenger vehicle and commercial vehicle operations into independent listed entities.
Additionally, Tata Motors has set Friday, October 10, 2025, as the record date to identify eligible debenture holders of the company’s Non-Convertible Debentures (NCDs) that will be transferred to TMLCV. The company is also merging NCDs worth ₹2,300 crore with its commercial vehicle arm as part of the restructuring process.Following the demerger, the equity shares to be allotted by TMLCV are proposed to be listed on both BSE Limited and the National Stock Exchange of India Limited (NSE), subject to necessary regulatory approvals.
What demerger means for investors?
According to a report by SAMCO Securities, investors holding Tata Motors shares as of the record date will receive shares of both companies in the specified ratio (1:1 or as declared). The share price of Tata Motors will adjust on the ex-date, October 14, 2025, to reflect the new corporate structure.
Once both entities are listed, shareholders will see the shares of Tata Motors Passenger Vehicles and TML Commercial Vehicles credited to their demat accounts. The overall value of their portfolios will remain unchanged during the record date, though the two entities may trade differently over time based on their individual business performances.
How demerger affects traders?
As per SAMCO Securities, traders in Futures & Options (F&O) and Margin Trading Facility (MTF) will face restrictions beginning today, October 8. New F&O or MTF buy positions in Tata Motors cannot be created during this period, as exchanges look to ensure price stability and prevent sharp volatility ahead of the demerger.
Existing positions, however, can still be managed or squared off before the restriction window ends. Normal trading activities will resume once the demerger process is complete.
What should investors do?
SAMCO Securities advised investors to stay informed through official announcements from Tata Motors regarding the demerger. Traders and investors are encouraged to avoid creating new leveraged positions in F&O or MTF until restrictions are lifted.They can plan their trades in advance to avoid last-minute issues and review their portfolios once both companies are listed to make any necessary adjustments.
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