Tata Motors Stock Adjusts to Demerger; Shares of PV Unit Start Trading at Rs 400

Shares of Tata Motors Ltd, representing only the company’s passenger vehicle (PV) business, began trading on Tuesday at a discovered price of Rs 400 on the NSE, following the completion of its demerger process.

The stock fell by up to 5.9% in early trade after the special pre-open price discovery session valued the separate PV entity at Rs 400 per share. On Monday, the erstwhile combined Tata Motors stock had closed at Rs 660.75.

Following the demerger process, which was completed on October 1, Tata Motors Ltd remains a listed company but will be renamed Tata Motors Passenger Vehicles Ltd. This entity will handle the passenger vehicle business, which includes its investments in electric vehicles and Jaguar Land Rover.

On the other hand, Tata Motors Commercial Vehicles Ltd. (TMCVL) will be renamed Tata Motors Ltd. The CV business listing is expected to follow within the next 30 to 45 days, completing the separation of the automaker’s key businesses.

Tata Motors has set Tuesday as the record date to determine shareholders eligible to receive shares in its CV business. Investors holding Tata Motors shares as of the record date will be entitled to shares under the demerger scheme, receiving one share of the new CV entity for every share of Tata Motors held. The shares of the CV business are expected to be listed and begin trading on the BSE and NSE in mid-November.

The company’s board had approved the demerger of CV and PV into two separate listed entities last year to sharpen business focus and capitalize on future growth opportunities.

According to the company, the split will enable “sharper strategic focus, improved agility, and clearer capital allocation,” allowing each arm to accelerate innovation and respond to changing market dynamics more effectively. For shareholders, the demerger offers the prospect of exposure to two focused businesses and greater value discovery.

Meanwhile, Tata Motors has also restructured its leadership to ensure the two businesses can operate independently. Girish Wagh has been appointed the Managing Director & CEO of the new commercial vehicle entity, while Shailesh Chandra will lead the PV entity, continuing his role as MD of Tata Passenger Electric Mobility Ltd. Group CFO PB Balaji will take charge as CEO of Jaguar Land Rover.