Over the past five trading days, the stock has dropped by 9.5%, hitting a low of Rs 669 on the BSE, as investors get ready for change in the company's operations and structure because of the business division.
Tata Motors has designated October 10, 2025, a Friday, as the record date for debenture holders in its demerger initiative. This plan includes the transfer of non-convertible debentures (NCDs) worth ₹2,300 crore to the newly formed company, TML Commercial Vehicles Limited (TMLCV), which specializes in commercial vehicles.
In a separate announcement, Tata Motors has set October 14,Tuesday, as the record date for its demerger. On this date, the company will assess shareholder eligibility for share allocation according to the approved scheme of arrangement.
Information on Tata Motors' Demerger:
Tata Motors' division was completed on October 1, 2025, with the official commencement date being July 1, 2025, leading to the Commercial Vehicle (CV) and Passenger Vehicle (PV) sectors becoming separate entities.
Tata Motors Ltd will remain a publicly traded company. Following the demerger plan, Tata Motors Ltd will be renamed Tata Motors Passenger Vehicles Ltd and will continue its operations in the passenger vehicles sector, including its investments in the Electric Vehicle business and Jaguar Land Rover.
Forecast for Tata Motors Stock Price:
Drumil Vithlani, a Technical Analyst at Bonanza, pointed out that the share price of Tata Motors is currently below the 20-week EMA (₹688.46), which is now serving as a resistance level.Momentum indicators point to either consolidation or minor weakness, but do not yet indicate a complete reversal.
Tata Motors' stock price has decreased by 4% over the past month but has surged by more than 16% in the last six months. Year-to-date, the shares have fallen by 9%, and over the past year, the stock has dropped by 27%. Despite this, Tata Motors' share price has provided impressive multibagger returns of 390% over the last five years.
Key Factors Contributing to the Decline:
1) Effect of the Demerger: The current division of Tata Motors into separate Passenger and Commercial Vehicle units has led to some ambiguity. The record date for debenture holders is set for October 10, and for shareholders, it is October 14.
2) Strong Pressure to Sell:As the record dates near, investors have been offloading shares, leading to a 7% drop over the last six sessions.
3) Technical Consolidation: Experts point out that the stock is maintaining stability within a defined range, indicating a lateral movement.
Disclaimer: The opinions and suggestions presented here are from individual analysts or brokerage firms, and do not reflect the views of The Bridge Chronicle (TBC). We recommend that investors consult with certified professionals before making any investment choices.
