Mumbai: Tata Motors’ newly demerged Commercial Vehicles (CV) business made a remarkable debut on the stock market on Tuesday, 12 November 2025, with shares listing on the NSE at ₹335, marking a 28.48% premium over the estimated price of ₹260.75. Analysts see this as a positive signal for the company, with long-term benefits expected from the strategic demerger.
Demerger Details
The listing follows the demerger of Tata Motors, which became effective on 1 October 2025. Under this scheme, shareholders of Tata Motors received one share of TMCVL for every one share held as of the record date, 14 October 2025.
Post-demerger, the Commercial Vehicle division now operates under Tata Motors Commercial Vehicles Limited (TMCVL), while Passenger Vehicles (PV), Electric Vehicles (EVs), and Jaguar Land Rover (JLR) have been consolidated under Tata Motors Passenger Vehicles Limited (TMPV), which continues as a separately listed entity.
Listing and Trading Mechanics
As per BSE filings, over 368 crore equity shares with a face value of ₹2 each were accepted for trading under the ticker ‘TMCVL’. For the first 10 trading sessions, the stock will operate in the ‘Trade-for-Trade’ segment, meaning delivery-based transactions only to establish the stock price accurately.
Analyst View: Long-Term Positivity
Abhinav Tiwari, Research Analyst at Bonanza, highlighted that both retail and institutional investors will adjust their portfolios post-demerger, which may lead to short-term volatility. However, the long-term outlook remains positive, citing TMCVL’s strong market share, healthy cash flows, and the strategic acquisition of Italy’s Iveco as key growth drivers.
Analysts suggest that long-term investors consider holding the stock, while short-term traders wait for price stability before taking positions.
Market Experts See Value Creation
Experts widely agree that the demerger provides clearer valuations for Tata Motors’ two main verticals – CV and PV. Pankaj Pandey of ICICI Securities noted that the CV business is expected to trade at around 11x EV/EBITDA for FY27, indicating a fair value of ~₹300 per share, aligning with peers.
Nomura valued TMPV and TMCVL at ₹367 and ₹365, respectively, cautioning investors about short-term technical risks due to index rebalancing and portfolio adjustments. YES Securities called the move a ‘value unlocking opportunity’, while Bonanza Research’s Khushi Mistry stated that the demerger allows both companies to focus sharply on their core business.
I
Discover more from SD NEWS agency
Subscribe to get the latest posts sent to your email.