Why Tata Motors Share is Falling Today: Shares of Tata Motors fell nearly 40 per cent in early trade on Tuesday, opening at Rs 400 on the Bombay Stock Exchange, after the stock began trading ex-demerger value. The decline reflects the separation of its commercial vehicles (CV) business into a new listed entity—Tata Motors Commercial Vehicles Ltd (TMLCV).
Price discovery after demerger
The shares of Tata Motors were discovered at a price of Rs 400 apiece on NSE on October 14, marking a drop of 39.5 per cent (or Rs 260.75 per share) from its previous closing price after a special pre-open session on the stock exchanges. The stock has now adjusted to the demerger of its commercial vehicle business.
Record date and share allocation
October 14 marks the record date for Tata Motors’ long-aw