Tata Motors' share price faced a setback this week as investors booked profits after it gained nearly 8% last week due to the demerger record date announcement. On October 7th, Tata Motors shares dropped by 2% and erased its Rs 700 mark. The heavyweight auto stock is going to be in focus on Wednesday as its luxury car brand Jaguar Land Rover (JLR) is going to restart its production on October 8th after a cyberattack. Apart from this, Tata Motors shares is set to split by 1:1 by next week and here's how it will impact investors.
Tata Motors Share Price:
Tata Motors continued its selling pressure on October 8th. At the time of writing, the stock traded at Rs 686.85 apiece on BSE, down by over 1.6% with market cap of Rs 2,52,972.27 crore. The stock is near its intraday low of Rs 685.45 apiece.
Yesterday as well, Tata Motors shares ended at Rs 698.15 apiece, down by 2.01% on BSE, with market cap of Rs 2,57,078.00 crore. The stock erased its Rs 700 mark.
Last week, this Tata auto stock gained between 7-8% after its demerger of 1:1 ratio became effect and the company announced its record date to identify eligible shareholders.
Hence, the latest drop is due to profit booking. Despite this, Tata Motors shares are still up by 4% in past five sessions. In past six months, Tata Motors has recovered significant losses and climbed by nearly 18.6% as of now. YTD, its downside is squeezed to 7%.
Tata Motors JLR Cyberattack Update:
JLR has announced the latest steps in the phased restart of its operations and the agreement of a new financing solution to support the cashflow of qualifying JLR suppliers, as the business returns to the manufacture of its world-class vehicles after a cyber incident in early September.
The operations is starting from October 8th onward.
Tata Motors Demerger Record Date:
The auto giant is going to split in the ratio of 1:1. The demerger will result in listing of two separate entities namely TML Commercial Vehicles and Tata Motors Passenger Vehicles which will include JLR business as well.
To identify eligible shareholders for 1:1 demerger, Tata Motors has fixed October 14th as the record date. This means that only those investors will be issued and allotted 1 (One) share of TMLCV (face value of INR 2/- each fully paid up), for every 1 (One) share of the Company (face value of INR 2/- each fully paid up) of the same class of shares outstanding and as held by them in the Company on the "Record Date".
But before that, Tata Motors also set Friday, October 10, 2025 as the "Record Date" for the purpose of determining the eligible Debenture Holders of the identified Non-Convertible Debentures ("NCD") to be transferred from the Company to TMLCV as per the Scheme. Tata Motors is also merging its NCDs worth Rs 2,300 crore with TML Commercial.
After this, the said equity shares to be allotted by TMLCV are proposed to be listed with BSE Limited and the National Stock Exchange of India Limited, subject to necessary regulatory approvals.
How Will Tata Motors Split Impact Investors?
According to brokerage Samco report, here's what will happen to investors portfolio post demerger:
- You'll receive shares of both companies, in a ratio that Tata Motors will announce (for example, 1:1 or as decided).
- The share price of Tata Motors will adjust on the ex-date (Oct 14, 2025) to reflect the new structure.
- Once the new company is listed, you'll see both sets of shares in your demat account.
In simple words, the overall value of your portfolio will not be changed during the record date, but may move differently and vary over the future course.
What Should You Do as an Investor?
According to Samco, here's how investors can prepare themselves:
- Keep an eye on official announcements from Tata Motors.
- Avoid creating new F&O or MTF positions until the restriction is lifted.
- Plan your trades early to avoid last-minute surprises.
- Review your portfolio once both entities are listed to rebalance if needed.
Should You Buy Tata Motors Shares?
As per Trendlyne data, the consensus recommendation from 27 analysts for Tata Motors Ltd. is HOLD. The average target price on Tata Motors is set at Rs 766.63 apiece, signalling nearly 10% potential upside ahead. Emkay Global is the latest to recommend BUY for a target price of Rs 750.
Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.
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