Tata Motors shares fall on an important day for its shareholders; Here's what's in store

Shares of Tata Motors Ltd. fell as much as 2% on Monday, October 13, as it is the last day that the stock trades as a consolidated entity before its demerger.

Tuesday, October 14, has been fixed as the record date for the demerger of Tata Motors' Commercial Vehicles business. Shareholders who have shares of Tata Motors in their demat account as of Monday's close, will be eligible to the demerger entitlement scheme.

Eligible shareholders of Tata Motors will be eligible to receive one share of the demerged entity for every one share they own. Shares currently carry a face value of ₹2 each.

The demerger scheme had already become effective on October 1, 2025.

On the record date, the share price of the existing listed entity of Tata Motors will be adjusted for the exclusion of the Commercial Vehicle business, through a price discovery mechanism of the stock exchanges.

The demerged entity will be named Tata Motors Ltd. Commercial Vehicles., while the existing listed entity will trade as Tata Motors Passenger Vehicles Ltd. (TMPVL).

During the period of the allotment of shares of the demerged entity till its listing, the stock will remain unavailable to be trade. The process of obtaining listing and trading permissions generally takes 45-60 days, Tata Motors said in its exchange filing last week.

Back in 2023, Tata Motors had announced the demerger of its Commercial Vehicles business. The proposal has now received all regulatory approvals.

The company is currently grappling with issues plaguing its luxury car manufacturing unit Jaguar Land Rover (JLR) in the aftermath of the cyberattack, which, according to reports, could result in a bill worth over £2 billion, higher than JLR's entire profit in financial year 2025.

Shares of Tata Motors are trading 1.8% lower on Monday at ₹667.1. The stock is down 5% in the last one month.