Tata Motors Demerger: Final Trading Day and Market Impact
Tata Motors shares approach a pivotal moment as the ex-date for its demerger takes effect. Investors have until today to trade before the restructuring, with a special pre-opening session scheduled on October 14 to determine fair value for the separated entities.
The demerger splits Tata Motors into two distinct listed units: a standalone commercial vehicle business (TMLCV) and a passenger vehicle division retaining EV and Jaguar Land Rover assets. Shareholders will receive one TMLCV share for each Tata Motors share held by the record date of October 14.
Derivatives markets face immediate consequences. All open Tata Motors F&O contracts expiring in late 2025 will now settle early on October 13, forcing physical settlement for positions not closed before market open. The MOVE affects approximately ₹230 crore in open interest.