Tata Motors CV Arm Lists With 19% Gain After Landmark Demerger

Tata Motors’ commercial vehicles arm, which was formerly called TML Commercial Vehicles Ltd, has listed today on stock exchanges as Tata Motors Ltd. The listing was about 18.89% above the demerger price of ₹260.57 at ₹310 per scrip on the NSE in early trading. On the BSE, the share was also trading with a smaller gain at ₹298.

Tata Motors has completed its long-planned restructuring by splitting into two separately listed companies, one dedicated to passenger vehicles, including electric models and Jaguar Land Rover, and the other to commercial vehicles.

In a filing on Monday, Tata Motors Passenger Vehicles said it had received approval from stock exchanges to begin trading shares of the new commercial vehicles entity from November 12.

Will Tata Motors shareholders receive new shares after demerger?

As per the company’s earlier announcement, shareholders will receive one share of the demerged commercial vehicles arm for each share held in Tata Motors as of the record date, October 14, 2025.

A total of 368 crore equity shares with a face value of ₹2 each will be listed under the symbol TMCV, according to a separate notice. The stock will trade in the trade-for-trade segment for the first 10 sessions, in line with standard norms for new listings. The demerger was approved by the National Company Law Tribunal (NCLT), Mumbai Bench, in its orders dated August 25 and September 10, 2025.

Tata Motors Passenger Vehicles was listed on October 14 after a pre-open price discovery session, debuting at ₹400 per share. Based on the pre-demerger closing price of ₹660.75, this suggested an indicative value of around ₹260 per share for the commercial vehicles business.

The passenger vehicles company will release its first quarterly results since the demerger on November 14. Its stock has risen nearly 4% since listing, closing at ₹410.7 on the NSE in Monday’s session.

Why Tata Motors Is Splitting Its Business

During the demerger announcement in 2024, the company said that since 2021, these businesses have been operating independently under their respective CEOs.

The demerger is a logical progression of the subsidiarisation of PV and EV businesses done earlier in 2022 and shall further empower the respective businesses to pursue their respective strategies to deliver higher growth with greater agility while reinforcing accountability. Furthermore, while there are limited synergies between the Commercial Vehicles (CV) and Passenger Vehicles (PV) businesses, there are considerable synergies to be harnessed across PV, EV, and JLR, particularly in the areas of EVs, autonomous vehicles, and vehicle software, which the demerger will help secure.

“This demerger will help them better capitalise on the opportunities provided by the market by enhancing their focus and agility. This will lead to a superior experience for our customers, better growth prospects for our employees, and enhanced value for our shareholders,” Chairman N. Chandrasekaran said at the time.