Latest Tata Motors Share News
On October 14, 2025, Tata Motors shares experienced a significant surge of 15%, reaching a closing price of ₹660.90 on the Bombay Stock Exchange (BSE). This uptick was attributed to positive investor sentiment following the company’s announcement of a strategic demerger plan. The demerger aims to separate Tata Motors’ commercial vehicle and passenger vehicle businesses into two distinct entities, potentially unlocking value for shareholders.
However, the excitement was tempered by a subsequent decline in share prices. The stock opened on October 14 at ₹399, reflecting a notional drop of approximately 40% due to the demerger adjustment. This adjustment is a technical effect, not a real loss in shareholder value. Investors who held Tata Motors shares as of the record date are entitled to receive an equivalent number of shares in the new commercial vehicle entity, Tata Motors Commercial Vehicles Limited (TMLCV), which is expected to list on the stock exchanges in the coming weeks.
Reasons Why Tata Motors Share Is Falling Today
The apparent 40% drop in Tata Motors’ share price on October 14 was primarily due to the demerger adjustment. Prior to the demerger, Tata Motors’ stock price reflected the combined value of both its commercial and passenger vehicle businesses. Post-demerger, the stock price adjusted to represent only the passenger vehicle segment, leading to a lower opening price.
It’s important to note that this decline does not indicate a loss in the overall value of an investor’s holdings. Shareholders now own shares in two separate entities: Tata Motors Passenger Vehicles Limited and TMLCV. The market will determine the valuation of each entity independently, and analysts suggest that the demerger could lead to more focused management and potentially higher valuations for both businesses in the long term.
Tata Motors Share Price Analysis
Current Share Price Overview
As of October 14, 2025, Tata Motors shares are trading at ₹410.00, reflecting a 37.95% decrease from the previous closing price of ₹660.75. This drop is a result of the demerger adjustment and not an actual loss in shareholder value.
Price Target Predictions
Analysts have provided varied price targets for Tata Motors following the demerger:
- Nomura has set a target of ₹1,000 for Tata Motors Passenger Vehicles Limited, citing potential growth in the electric vehicle segment and the strength of the Jaguar Land Rover brand.
- Morgan Stanley estimates a target of ₹950 for TMLCV, based on the robust demand for commercial vehicles in emerging markets.
These targets suggest a positive outlook for both entities, contingent on their ability to execute their respective strategies effectively.
Tata Motors Demerger Details
What Is the Tata Motors Demerger?
The demerger involves the separation of Tata Motors into two independent, listed companies:
- Tata Motors Passenger Vehicles Limited: This entity will focus on the development and sale of passenger vehicles, including electric vehicles and the Jaguar Land Rover brand.
- TMLCV (Tata Motors Commercial Vehicles Limited): This entity will handle the production and sale of commercial vehicles, such as trucks, buses, and construction vehicles.
Demerger Dates, Ratios, and Impact
The demerger became effective on October 1, 2025, with the record date for shareholders set on October 14, 2025. Shareholders of Tata Motors as of the record date are entitled to receive one share in TMLCV for every share held in Tata Motors. The market will determine the valuation of each entity independently, and the listing of TMLCV is anticipated in the coming weeks.
Tata Motors Commercial & Passenger Vehicles Share Overview
Commercial Vehicles Segment
The commercial vehicles segment, now represented by TMLCV, is expected to benefit from the growing demand for infrastructure development and logistics in emerging markets. Analysts anticipate that TMLCV’s focus on this sector will lead to improved operational efficiency and profitability.
Passenger Vehicles Segment
Tata Motors Passenger Vehicles Limited will continue to leverage its strengths in the passenger vehicle market, including the development of electric vehicles and the expansion of the Jaguar Land Rover brand. The company’s commitment to innovation and sustainability positions it well for future growth in the competitive automotive industry.
Is Tata Motors a Good Share to Buy?
The demerger presents both opportunities and risks for investors:
Opportunities
- Focused Management: Each entity can now concentrate on its core business, potentially leading to better strategic decisions and operational efficiencies.
- Value Unlocking: The separation may unlock value by allowing investors to invest directly in the segment they find most appealing.
Risks
- Market Volatility: The initial market reaction to the demerger has been volatile, and future price movements may be influenced by broader market conditions and sector-specific factors.
- Execution Challenges: Both entities will need to execute their strategies effectively to realize the potential benefits of the demerger.
Investors should consider their risk tolerance and investment objectives before making decisions.
FAQs (People Also Ask)
Why are Tata shares falling today?
The decline in Tata Motors shares is due to the demerger adjustment, where the stock price reflects only the passenger vehicle business, excluding the commercial vehicle segment.
What is the Tata Motors demerger ratio?
Shareholders of Tata Motors as of the record date are entitled to receive one share in TMLCV for every share held in Tata Motors.
When is the Tata Motors share split/demerger date?
The demerger became effective on October 1, 2025, with the record date for shareholders set on October 14, 2025.
What happened to Tata Motors share recently?
The share price experienced a notional drop due to the demerger adjustment, not an actual loss in shareholder value.
What is the price target for Tata Motors stock?
Analysts have set varied price targets for Tata Motors, with Nomura estimating ₹1,000 for Tata Motors Passenger Vehicles Limited and Morgan Stanley estimating ₹950 for TMLCV.
