Tata Motors started trading on Tuesday with its demerged business — the passenger vehicle and commercial vehicle business.

The company’s shares dropped 40 per cent on early Tuesday; a notional decline post its demerger. The demerged entity ended at ₹395.50 at down 0.88 per cent from the discovered price of ₹399. The combined entity on Monday closed at ₹690 on the BSE.

The company will be named Tata Motors Passenger Vehicles Ltd which will include passenger vehicles, electric vehicles and Jaguar Land Rover (JLR). The existing Tata Motors shareholders will receive equal shares in both the new entities (record date: October 14).

The Tata Motors Commercial Vehicle (TMLCV), the demerged business, is expected to be listed in November.

Revenue declines

“TMLCV will enter the market as India’s

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