Tata Motors Commercial Vehicles shares list at ₹330

Shares of Tata Motors' commercial vehicle arm got listed on the bourses today, debuting at ₹330 apiece. At the time of reporting, it was trading at ₹337.10, up by 2.07%. The shares were listed at a premium of ₹70 from the expected value of ₹260 post the demerger. The consolidated share price pre-demerger was ₹660, and the passenger business was listed at ₹400.

The commercial vehicle arm will be renamed as Tata Motors Limited and will be listed as TMCV on the bourses.

The shares will be listed and admitted to dealings on the Exchange in the list of “T” Group Securities.

Tata Motors' demerger was effective from October 1, which separated the commercial vehicle business from the passenger vehicle arm. Girish Wagh, who leads the commercial vehicles arm of Tata Motors, joined the board of TML Commercial Vehicles as an additional director, managing director, and CEO, effective October 1.

As per the demerger terms, for each share held in the combined company, shareholders will receive a share of Tata Motors Commercial Vehicles — a share entitlement ratio of 1:1 — on the record date, October 14.

According to Tata Motors Chairman N. Chandrasekaran, the demerger would bring greater strategic clarity and agility, enabling a more focused approach to execution and value creation, delivering long-term returns for shareholders.

In March 2024, Tata Motors’ board approved a proposal to demerge the automaker into two separate listed companies — one housing its commercial vehicles business and the other its passenger vehicles business, including electric vehicles (EVs) and the British marque Jaguar Land Rover (JLR).

The demerger will be implemented through a scheme of arrangement under the National Company Law Tribunal (NCLT), and all shareholders of Tata Motors will continue to hold the same shareholding in both listed entities.

Shares of the passenger vehicle (PV) arm were listed as TMPV on October 14, with its share price at ₹400, and are currently trading at ₹408.90, up by 0.32% from yesterday's closing. Its market capitalisation stands at ₹1.5 lakh crore.