Tata Motors CV Listing: Shares Jump 28% After Demerger on Strong Debut

Mumbai | November 12

Tata Motors’ newly demerged commercial vehicle (CV) arm made a strong stock market debut on Wednesday, listing at ₹335 per share on the NSE, a 28.4% premium over the discovered price of ₹260.75 in the pre-open session. On the BSE, the stock opened slightly lower at ₹330.25, still up 26% from its implied value.

This marks the second major milestone in Tata Motors’ corporate restructuring, following the separate listing of its passenger vehicle (PV) division – Tata Motors Passenger Vehicles Ltd (TMPV) – in October. Together, the two listings represent one of India’s largest auto sector demergers in recent years, aimed at driving sharper focus and unlocking long-term shareholder value.

A Clean Split Between Passenger and Commercial Businesses

In early 2024, Tata Motors announced plans to split its business into two distinct entities – one dedicated to commercial vehicles and related investments, and the other encompassing passenger vehicles, electric vehicles (EVs), and Jaguar Land Rover (JLR). The demerger became effective on October 1, 2025, with October 14 fixed as the record date to determine eligible shareholders.

Investors holding Tata Motors shares as of the record date received one share in the new commercial vehicle company for every share held in the parent entity, resulting in identical ownership across both firms.

Following the reorganisation, the commercial vehicle business began trading today as Tata Motors Ltd (formerly TML Commercial Vehicles Ltd), while the passenger vehicle unit trades as Tata Motors Passenger Vehicles Ltd (TMPV).

The NSE confirmed the change, stating that effective November 12, the equity shares of Tata Motors Ltd “shall be listed and admitted to dealings under the ‘T Group of Securities.”

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A Strong Market Debut

At market open, Tata Motors CV shares surged to ₹335, outperforming analyst expectations. While the stock later eased due to profit-taking, it continued to trade well above its discovered price, quoting around ₹324 on NSE and ₹322.60 on BSE by mid-morning.

Market participants had earlier pegged the CV arm’s implied valuation at ₹260-₹270 per share, based on Tata Motors’ pre-demerger closing price of ₹660.75. The 28% listing premium therefore signals strong investor appetite for India’s largest truck and bus manufacturer.

TMPV shares, meanwhile, traded around ₹409 apiece, up nearly 1%, maintaining their steady post-demerger performance.

Commercial Vehicle Business Outlook

Tata Motors’ commercial vehicle business remains the backbone of India’s freight and mobility ecosystem. In October 2025, the company reported a 10% year-on-year rise in total CV sales to 37,530 units, driven by healthy domestic demand and a sharp 56% jump in international business.

Domestic sales stood at 35,108 units, up 7% from 32,708 units a year earlier. The uptick underscores the ongoing recovery in industrial and infrastructure-linked transport demand, aided by government spending and fleet upgrades across categories.

The demerged entity’s sharper focus on commercial mobility, new-age powertrains, and export expansion is expected to strengthen margins and competitiveness over time.

Demerger Outcome

With both Tata Motors entities now listed independently, investors have greater clarity on business fundamentals and earnings visibility. The passenger vehicle arm is set to leverage its EV leadership and premium JLR brand, while the commercial vehicle division can prioritise volume growth and operational efficiency.

The two-track structure gives the Tata Group flexibility to unlock value, attract strategic partners, and compete across distinct growth markets – electric mobility and industrial logistics.

The demerger is not just a structural change but a strategic realignment – positioning Tata Motors as two focused powerhouses ready to capture India’s next decade of automotive growth.