Explainer: Why Tata Motors's share price fell by ₹260
On October 14, Tata Motors's share price tumbled from ₹660.75 to about ₹399—a big dip, but not because the company's struggling.
It's all down to a technical reset after Tata Motors split its commercial and passenger vehicle businesses into separate companies.
What's happening with Tata Motors?
The company is now split into two units: one for passenger cars, EVs, and Jaguar Land Rover, which is currently trading; the other just for commercial vehicles (think trucks and busses), with its listing pending and expected to take up to 60 days.
If you held Tata Motors shares on October 14, you'll get a new commercial vehicle share for every share you owned.
It's just math
To keep things fair and avoid chaos during the split, Indian stock exchanges ran a special pre-market session to set new prices.
The adjusted passenger vehicle share now trades at ₹399, which hints that the market values the commercial vehicle business at around ₹260 per share.
So while it looks dramatic on paper, this drop is just math—not a sign of trouble at Tata Motors.