Shares of Tata Motors Commercial Vehicles (TMCV) made an impressive market debut on Wednesday, listing at a premium of above 28% on the NSE. This debut marks the final step in the Tata Motors demerger, which split the company into two independently listed entities.
The commercial vehicles stock opened at ₹335 on the NSE, marking a 28.48% uptick over its determined implied value of around ₹260-270 per share. On the BSE, it listed at ₹330.25, a 26.09% premium. At listing, the company’s market capitalization stood at approximately ₹1,22,345.46 crore on the NSE.
The demerger officially took effect on October 1, following the company’s 2024 announcement to separate its businesses. The commercial vehicles segment and its associated investments were transferred to the newly listed company, while the passenger vehicles (PV) segment, which encompasses PV, electric vehicles (EVs), and Jaguar Land Rover (JLR), was organized into a separate entity, Tata Motors Passenger Vehicles Ltd (TMPV). The PV arm had already made its independent market debut on October 14.
The split is seen as a major step in unlocking long-term value for shareholders, allowing investors to value the cash-generating CV business and the high-growth PV/EV business on their own strengths.
On Wednesday, Tata Sons Chairman N. Chandrasekaran described the listing of Tata Motors Commercial Vehicles as a “decisive moment” not only in the company’s journey but also for the broader automotive industry. Analysts are bullish on the CV arm’s prospects, citing tailwinds from logistics, infrastructure growth, and the GST rate cut.
