New Delhi, Oct. 14 -- With the record date for the Tata Motors demerger fixed today, October 14, the automaker's stock reflected a 40% fall from its last closing price. On BSE, Tata Motors shares opened at Rs.399, down from Monday's close of Rs.660.90.
While the fall may seem significant, worrying investors, they must note that this is just notional in nature. It's mainly due to the spin-off of the commercial vehicle (CV) business from the passenger vehicle (PV) business into a separate entity.
In simple terms, Tata Motors has separated its commercial vehicles division into a new company. Due to this, the original Tata Motors stock now only reflects the value of the passenger vehicle business. The drop in share price shows that the comm...
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