Tata Motors CV shares soar 28% on market debut after demerger
Tata Motors’ newly demerged commercial vehicles (CV) arm made a strong market debut on Wednesday, listing at ₹335 per share on the NSE, a 28.5% premium to its discovered price of ₹260.75.
The listing follows the demerger of Tata Motors’ commercial vehicle business from its passenger vehicle segment, a move designed to give investors clearer visibility into each division’s performance, News.Az reports, citing foreign media.
The passenger vehicle business, now known as Tata Motors Passenger Vehicles Ltd (TMPVL), was valued at ₹400 per share on October 14 — the record date fixed earlier this year for shareholder eligibility. The demerger became effective on October 1, officially creating two independent listed entities:
Tata Motors Ltd (TML) – Commercial Vehicles
Tata Motors Passenger Vehicles Ltd (TMPVL) – Passenger and EV segment
Tata Motors’ board had approved the split last year to sharpen strategic focus and unlock value for shareholders by separating the fast-growing EV and passenger vehicle division from the cash-generating commercial vehicle arm.
“The demerger allows investors to value each business on its own strength,” said Jahol Prajapati of SAMCO Securities.
Meanwhile, TMPVL shares were trading with modest gains at ₹409 apiece, up over 2% since the demerger adjustment in October.
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