India, Oct. 14 -- The Tata Motors demerger takes effect today to list the trucks and car units separately on India's stock exchanges. Tata Motors PV share price, pegged at Rs.400 after a special pre-open price discovery session, fell as much as 5.53% to Rs.376.90 apiece on the BSE.

After the demerger, the company will be renamed as Tata Motors Passenger Vehicles Ltd. and house all the car-making businesses including electric cars and Jaguar Land Rover. The newly carved out entity for India's largest truckmaker will then be called Tata Motors Ltd.

The new Tata Motors share price became active after a one-hour pre-market trading session from 9:00 am in Mumbai. The price discovered during this window helps determine the valuation of Tata M...