Tata Motors Limited’s share price dropped sharply on February 21, 2025, as reports emerged of multiple top executives leaving the company ahead of its planned demerger. The stock opened lower at ₹686 on the NSE and fell to an intraday low of ₹673.30 within the first hour of trading. Investors reacted negatively to concerns over leadership changes, triggering a sell-off in the market.
The news comes at a time when many retail investors are looking to apply for an IPO online, making stock market trends even more crucial to watch.
Details of Tata Motors’ demerger
Tata Motors announced its business demerger plan in March 2024, aiming to separate its commercial and passenger vehicle divisions into distinct entities. To facilitate this transition, the company engaged many global consulting firms to conduct a talent mapping exercise.
The restructuring has led to role changes among senior executives, causing dissatisfaction among some of them. Analysts suggest that those holding key positions across both business units now have reduced responsibilities, which could be a reason behind their exits.
Key executives who have resigned
Several high-ranking executives have resigned from Tata Motors in recent weeks. Among them are:
Some of these executives have already joined new organisations in leadership roles.
Market reaction and share price outlook
The exits have raised concerns among investors, leading to heightened volatility in Tata Motors’ share price. Analysts note that the stock is currently moving in a sideways to negative trend.
One market expert stated, "Tata Motors’ share price has built strong support at ₹650-₹660. Existing shareholders should maintain a stop loss at ₹650. If the stock closes above ₹700, it could see an upward move to ₹750."
For fresh investors, analysts recommend caution, suggesting they wait for a confirmed breakout before taking positions.
Future impact on Tata Motors’ performance
While the demerger is expected to unlock value for Tata Motors in the long run, the short-term leadership shakeup has created uncertainty. As of 12:30 PM on February 21, 2025, Tata Motors' share price on the NSE was ₹676.50. Investors will be closely watching the company’s next moves, especially in appointing key replacements.
As market conditions remain dynamic, those looking to apply for an IPO online should carefully analyse trends before making investment decisions. Tata Motors' ability to stabilise leadership and execute its demerger effectively will be crucial in shaping its stock performance in the coming months.
For android only