Tata Motors Shares Slip On Demerger Record Date For Debenture Holders; Buy The Dip?

Tata Motors’ share price traded lower on Friday, extending losses for the sixth consecutive session as investors focused on the record date for the company’s ongoing demerger process. Tata Motors shares

declined as much as 1.89% to Rs 667.20 apiece on the BSE.

Over six trading sessions, Tata Motors share price has dipped more than 7% amid heavy selling pressure ahead of the demerger record dates.

Tata Motors Demerger Record Dates

As part of the demerger scheme, Tata Motors has fixed October 10, 2025 (Friday) as the record date for debenture holders. The scheme provides for the transfer of non-convertible debentures (NCDs) worth Rs 2,300 crore to the newly formed Commercial Vehicle (CV) entity, TML Commercial Vehicles Limited (TMLCV).

Thus, the record date for debenture holders is today.

Separately, the record date for shareholders is October 14, 2025 (Tuesday), when the company will determine eligibility for share allocation under the approved scheme of arrangement.

Tata Motors Demerger Details

The Tata Motors demerger became effective on October 1, 2025, with an Appointed Date of July 1, 2025, resulting in the separation of the Commercial Vehicle (CV) and Passenger Vehicle (PV) businesses into two independent companies.

Tata Motors Ltd will continue as a listed entity. Under the demerger scheme, Tata Motors Ltd will be renamed Tata Motors Passenger Vehicles Ltd and will carry on the passenger vehicle business, including its investments in the Electric Vehicle (EV) and Jaguar Land Rover (JLR) segments.

Meanwhile, TML Commercial Vehicles Limited will be renamed Tata Motors Limited.

The share entitlement ratio for the demerger is 1:1, meaning Tata Motors shareholders will receive one fully paid-up equity share of face value Rs 2 in TML Commercial Vehicles Limited for every one fully paid-up equity share of face value Rs 2 held in Tata Motors as of the record date.

On the record date, Tata Motors share price will be adjusted to reflect the demerger of the CV business through a price discovery mechanism on the stock exchanges.

Once the list of eligible shareholders of TMLCV is finalized, the shares will be allotted and subsequently listed on the BSE and NSE.

During the period between the allotment of shares and their listing, TMLCV shares will not be available for trading on the exchanges. Tata Motors noted in its regulatory filing on October 9 that the listing and trading permission process generally takes 45–60 days from the date of filing the necessary applications with the exchanges.

Guidance on the ‘cost of acquisition’ of equity shares in both TML and TMLCV will be communicated in due course, the company added.

Tata Motors Share Price Outlook

Tata Motors shares have underperformed other auto stocks in recent months, noted Ruchit Jain, Vice President, Equity Technical Research, Wealth Management, Motilal Oswal Financial Services Ltd.

“The short-term trend for Tata Motors shares appears sideways as prices are consolidating within a range. The immediate support is placed at Rs 655, while resistance is seen around Rs 730–Rs 740. A breakout from this range could trigger the next directional move,” Jain said.

Drumil Vithlani, Technical Analyst at Bonanza, pointed out that Tata Motors shares are trading below the 20-week EMA (Rs 688.46), which now acts as a resistance. “Momentum indicators suggest consolidation or slight weakness, but not a full reversal yet. Given the upcoming demerger, volatility is expected. It’s prudent to hold existing positions and avoid fresh entries until clarity emerges post-event,” Vithlani advised.

According to him, if Tata Motors holds above key support at Rs 669 and manages a close above the EMA at Rs 688–Rs 690, a short-term recovery toward Rs 720, and the next target of Rs 736–Rs 740, could be seen — a strong resistance zone.

“The immediate horizontal support is Rs 669.40, while Rs 660–Rs 650 levels are seen as an accumulation zone from June–July. The 20-week EMA and resistance cluster lie around Rs 688–Rs 690,” Vithlani added.

Over the past month, Tata Motors share price has fallen 4%, though it remains up 16% over six months. On a year-to-date basis, the stock has declined 9%, and 27% over the past year, but it has delivered multibagger returns of 390% over the past five years.

At 12:15 PM, Tata Motors share price was trading 0.15% lower at Rs 679.05 apiece on the BSE.

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