Tata Motors CV Shares Soar 28% on Debut After Demerger; PV Arm in Green Too

Tata Motors has demerged its commercial (CV) and passenger vehicle (PV) businesses into two separate entities. The CV arm’s shares soared 28.5% on its stock market debut, indicating strong investor confidence.

Tata Motors' newly demerged commercial vehicle (CV) business made a strong debut on Wednesday (November 12), listing at Rs 335 per share on the NSE, a solid 28.5% premium over the discovered price of Rs 260.75. The debut marks a new chapter for the automaker after officially splitting its commercial and passenger vehicle divisions.

The restructuring, which took effect on October 1, has created two focused entities, the commercial vehicle arm, which retains the name Tata Motors Ltd (TML), and the passenger vehicle and EV arm, now called Tata Motors Passenger Vehicles Ltd (TMPVL).

A New Era for Tata Motors

The demerger, approved by the board in August last year, was designed to sharpen business focus and unlock value. Tata Motors had fixed October 14 as the record date to determine which shareholders would receive shares in the newly separated commercial vehicle unit.

The move separates two very different growth stories, the stable, cash-rich CV business and the fast-evolving passenger and electric vehicle segment. Analysts say this clarity will help investors assess each arm based on its individual strengths.

Analysts Applaud the Move

“The demerger allows investors to value both businesses independently,” said Jahol Prajapati, Analyst at SAMCO Securities. “The commercial vehicle arm will continue generating steady cash flows, while the passenger vehicle and EV units are better positioned to capture India’s rapid shift toward cleaner mobility.”

The CV units strong market debut, analysts believe, signals investor confidence in Tata Motors’ long-term restructuring strategy.

PV Arm Also Gains Ground

Shares of Tata Motors Passenger Vehicles Ltd were also trading in the green on Wednesday, rising to Rs 409 per share, up more than 2% since adjusting to the demerger in October.

Market experts say the separation is a win-win for both sides, giving the passenger vehicle division more room to innovate in EVs, while letting the CV unit focus on core manufacturing and logistics growth.