Tata Motors Demerger: Last Day to Buy Before Record Date

 

Investors have one final opportunity to trade Tata Motors Ltd. as a consolidated entity, with Monday marking the last trading day before the demerger record date.

 

The demerger will split Tata Motors into two separate entities, separating the commercial vehicle and passenger vehicle businesses. This move aims to unlock growth potential for both segments.

 

Investors purchasing shares after Monday will not be eligible for shares in the newly created entity under the demerger scheme. Following the record date, attention will shift to the share allocation ratio and the listing timelines of the new company. The new entity is expected to list on stock exchanges within weeks, pending regulatory approvals.

 

On October 14, NSE will hold a special pre-open session from 9 a.m. to 10 a.m., allowing investors to adjust positions ahead of the stock split. The passenger vehicle business will be renamed Tata Motors Commercial Vehicle Ltd, while the existing commercial vehicle segment will continue as Tata Motors Limited.

 

The share-swap ratio is set at 1:1, meaning each fully paid Tata Motors share held by the record date will entitle the investor to one share in the new commercial vehicle company. No additional payment is required, and shares will be credited automatically once corporate actions are processed.

 

Tata Motors shares have faced pressure during the demerger period, falling nearly 5% in the last month and around 10% year-to-date.