Listing date of Tata Motors’ CV arm announced. Check details

The Tata Motors Commercial Vehicle (TMCV) arm will be listed on the stock exchange on November 12. The new entity will trade in the T Group of Securities. According to the BSE notification, 368 crore shares of face value of Rs 2 each will be admitted to trading under the ticker TMCV. The stock remains in the trade-for-trade bracket for the first ten sessions, a standard rule for new or re-listed companies.The listing completes a historic restructuring that will split Tata Motors into two independent listed companies, one focused on commercial vehicles and the other on passenger cars, electric vehicles (EVs) and Jaguar Land Rover (JLR).

The demerger came into effect on October 1, with a share ratio of 1:1, meaning investors received one share in the CV business for every Tata Motors share they held as of the record date, October 14.

As per the approved deal, the CV division will retain the Tata Motors name, while the newly formed Tata Motors Passenger Vehicles Ltd (TMPV) will house the domestic auto, EV and JLR divisions.

Analysts see the separation as a major milestone in value unlocking and governance for the Tata Group’s flagship carmaker. The move is part of Tata Motors’ plan to grant operational independence to both divisions so that they can each pursue their own growth priorities.

The PV business will now focus on premium and electric mobility, while the CV entity – which includes trucks, buses and defense vehicles – will drive growth in logistics, infrastructure and fleet electrification. After the record date adjustment, Tata Motors’ pre-demerger share price of Rs 660.75 was split between the two entities, with TMPV valued at around Rs 400 per share and the unlisted CV arm implied at Rs 260-270 per share. share.Brokerages remain largely positive about the CV list. Nomura has pegged fair values ​​for TMPV and TMLCV at Rs 367 and Rs 365, respectively, while SBI Securities expects the CV business to be valued at between Rs 320-470 per share, taking into account growth from the planned acquisition of Italy’s Iveco Group’s commercial vehicle business.

For Tata Motors, this move marks the culmination of a multi-year restructuring to simplify its business architecture and align its existing commercial division with a global product and technology roadmap.