Shares of Tata Motors Ltd’s demerged Commercial Vehicles (CV) unit were listed on the bourses on 12 November. Tata Motors CV Ltd. began trading at Rs 335 per share, 28% higher than its pre-open price discovery closing price of Rs 260. 

Tata Motors announced in an exchange filing earlier this week that its CV business will list on Wednesday, following clearances from the Bombay Stock Exchange and the National Stock Exchange.

The listing comes a month after the currently listed corporation began trading outside of the commercial vehicle business. The listed company is currently known as Tata Motors Passenger Vehicles Ltd.  

Tata Motors Passenger Vehicles Ltd. shares started trading at Rs 400 per share, following a pre-open price discovery session. After a month of independent trading, the stock remains at its listed price of Rs 400 per share.

Prior to the demerger record date, Tata Motors’ consolidated company halted trading at Rs 660 per share. The PV business has been listed at Rs 400, leaving the CV business with an intrinsic value of Rs 260 per share.  However, the listing price may deviate from these values.  

Tata Motors CV will be India’s largest commercial vehicle producer, with a presence in areas ranging from small cargo vans to medium and heavy commercial vehicles. The demerged firm would also incorporate the newly purchased Iveco Group NV, with integration expected to be completed by fiscal year 2027.

Tata Motors announced the demerger of its CV division into a separate publicly traded corporation in 2023. Those who owned Tata Motors shares as of the demerger record date were entitled to one share of the CV firm for each share held.  

Tata Motors’ PV business is also slated to report results for the September quarter on Friday, 14 November.  

At 11:32 am, the shares of Tata Motors Commercial were trading 26.04% higher at Rs 328.65 on NSE.

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