Tata Motors demerger impact: Changes in F&O lot size, OI, Strikes explained

Tata Motors Passenger Vehicles so far has seen tepid trade in the F&O segment compared to other auto peers; market experts believe the stock could trade in a range for now.

Tata Motors has split its auto business in two different verticals Tata Motors Passenger Vehicles (TMPV) and Tata Motors Commercial Vehicles (TMCV) with effect from October 1 in 1:1 demerger ratio. Meaning, Tata Motors shareholders now hold 1 share each of TMPV and TMCV.  The Tata group auto-major had fixed October 14 as the record date for ascertaining eligible shareholders for getting TMCV shares. Post October 14, shares of Tata demerger arm traded as TMPV on the BSE and NSE at an adjusted price of ₹400, as against the earlier day's close of ₹661 per share.  The company is in the process of getting TMCV shares listed, which may take up to 60 days depending on the requisite permissions from the stock exchanges.  ALSO READ | Explainer: Tata Motors demerger and what it means for shareholders  Meanwhile, existing TMPV shares which also trade in the derivatives segment more commonly known as the futures & options (F&O) market underwent the following transmission post demerger. 

Here's all you need to know that changes in Tata Motors F&O contract to TMPV:

  Old Contracts Expiry: All Tata Motors F&O monthly contracts (October, November and December) were settled on October 13, a day ahead of the record date for demerger.

 

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  Launch of new TMPV contracts: TMPV F&O contracts were launched on October 14 with all three months expiries. Currently, TMPV contracts are available for trading for November, December and January 2026 series.  ALSO READ | Tata Motors split: How will passive funds respond to CV arm demerger?  Lot Size: There was no change in Lot Size. Both the earlier Tata Motors contracts and the now TMPV contracts trade in multiples of 800 shares in the F&O market.  Option Strike Prices: As TMPV debuted around ₹400-mark, the current November series Calls and Puts options are available at Strike Price - between in a wide range of ₹300 - ₹520. 

What does TMPV F&O data suggests

  Ajit Mishra, senior vice president – research at Religare Broking believes that TMPV continues to trade on a sluggish note, with lower trading participation compared to other auto peers.  The analyst expects TMPV to trade in the range of ₹400 - ₹420 for now based on the current open interest (OI) build-up in the options segment. Notable OI in Puts is visible at ₹400 Strike and highest OI in Calls stands at ₹420 Strike for TMPV.  The NSE data shows that TMPV Put-Call-Ratio (PCR) stands at 0.52, implying presence of 2 open positions in Call options for every Put.