Tata Motors’ stock experienced a decline on Friday, extending its losing streak to six consecutive sessions, as investors reacted to the upcoming record date for debenture holders in the company’s demerger process.
On October 10, 2025, Tata Motors fixed the record date for determining the eligibility of debenture holders for the transfer of ₹2,300 crore worth of non-convertible debentures (NCDs) to the newly formed entity, TML Commercial Vehicles Limited (TMLCV).
As a result, Tata Motors shares fell by 1.89% to ₹667.20 on the Bombay Stock Exchange (BSE) before recovering slightly to trade at ₹680.10, but still down 0.15% as of 13:46 IST.
The demerger, which became effective on October 1, 2025, involves the separation of Tata Motors’ commercial vehicle and passenger vehicle businesses into two independent companies.
Shareholders of Tata Motors are set to receive one fully paid-up share of TMLCV for every share held in Tata Motors as of the October 14 record date The Economic Times.
Despite the short-term volatility, market experts suggest that the demerger could unlock value in the long run by allowing both entities to focus on their respective segments.
However, investors are advised to assess their portfolios carefully and consider the potential risks and rewards associated with the structural changes.
As the record date approaches, stakeholders are closely monitoring the developments, with expectations of increased clarity on the impact of the demerger on Tata Motors’ financial performance and market positioning.
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