Tata Motors' Commercial Vehicle (CV) business is set to list on the BSE and NSE today, November 12, 2025, marking the final step in the company's demerger process. This move separates Tata Motors into two distinct entities: one focused on commercial vehicles and the other encompassing passenger vehicles, electric vehicles (EVs), and Jaguar Land Rover (JLR). The demerger aims to unlock value for shareholders by allowing each business to operate independently, attract targeted investments, and achieve better long-term returns.
Demerger Details and Share Allotment
The demerger was approved by the National Company Law Tribunal (NCLT) in August and September 2025. As part of the process, shareholders received one share of Tata Motors Ltd (formerly TML Commercial Vehicles Limited) for every share of Tata Motors held on the record date of October 14, 2025. The CV arm will now trade as Tata Motors Limited, while the passenger vehicle, EV, and JLR entity continues trading as Tata Motors Passenger Vehicles Limited. According to the company, 368 crore shares of face value Rs 2 each will be listed.
Listing and Trading Considerations
The newly listed shares of Tata Motors Ltd will trade in the "T Group" segment for the first ten trading sessions. This means that initially, investors can only buy shares if they intend to take delivery, as intraday trading will not be permitted. This is a standard regulatory measure for newly listed or demerged companies.
Market analysts anticipate strong institutional interest in the CV arm, driven by funds focused on industrial, logistics, and infrastructure sectors seeking exposure to India's cyclical growth. However, early trading may experience price volatility as institutional and retail investors adjust their portfolios post-demerger.
Expected Valuation and Market Sentiment
Prior to the listing, the implied value of the CV arm was estimated to be around Rs 260.75 per share, based on Tata Motors' pre-demerger closing price of Rs 660.75 and the opening price of Tata Motors Passenger Vehicles Ltd at Rs 400. However, some market experts predict a higher listing price, with potential opening in the Rs 300-Rs 350 range.
Analysts at Ambit have described the demerger as "a separation of value and growth propositions," suggesting that the CV business is well-positioned to benefit from its market leadership and consistent cash flow. SBI Securities has estimated the fair value of TMLCV to be between Rs 320 and Rs 470, taking into account the company's acquisition of Iveco Group NV's commercial vehicle operations.
Strategic Implications
The demerger is expected to provide each business with a sharper operational focus and facilitate better capital allocation. Tata Motors Passenger Vehicles Limited, which includes the passenger car, EV, and JLR businesses, has already begun trading independently and will announce its first quarterly results post-demerger on November 14. This entity is currently performing well, with leadership in the EV segment and consistent profitability in JLR. The listing of the commercial vehicle business marks the completion of Tata Motors' restructuring efforts, paving the way for two focused auto giants.
