India, Oct. 14 -- Shares of Tata Motors Ltd. recorded a notional fall from Rs.660.75 apiece on Monday to Rs.399 apiece on Tuesday as a demerger came into effect. Meaning, the 40% "decline" in Tata Motors' share price today is a technical adjustment and not a material one.

After a one-hour pre-market session in Mumbai, Tata Motors shares started trading at Rs.400 apiece for PV shares. The gap from Monday's closing of Rs.660.75 implies a valuation of Rs.260.75 for the CV unit.

Indian exchanges have introduced these so-called special trading sessions in 2023 for companies undergoing a demerger to minimize market gyrations.

The Tata Motors demerger, first announced in March 2024, aims to split and list the company's passenger-vehicle and c...