Understanding Tata Motors' 40% Share Price Drop: A Technical Adjustment Due to Demerger Process

Oct 14, 2025 06:01 pm CST

Tata Motors shares experienced a 40% price drop as the stock began trading ex-demerger, separating its commercial vehicle business from passenger vehicles. This article explains the technical nature of this adjustment, detailing how shareholders will receive one TMLCV share for each Tata Motors share held on October 14, 2025, and why investors should not be concerned about this apparent decline in value.