Tata Motors Commercial Vehicles arm’s shares have been listed on the Indian stock exchanges, following completion of the demerger which took effect on October 1. Tata Motors shares (Commercial Vehicles) were listed at ₹335 apiece on NSE, a premium of 28.48% to its discovered price of ₹260.75 per share.
On BSE, TMCV (formerly Tata Motors Commercial Vehicle Ltd) shares got listed at ₹330.25 apiece, a premium of 26.09%.
Over 368 crore equity shares of face value ₹2 each were admitted to trading under the ticker symbol ‘TMCVL’ in the ‘T’ Group of Securities. As per BSE, the stock will remain in the trade-for-trade segment for the first 10 sessions to ensure smooth price discovery.
As part of the Tata Motors demerger scheme, the company has been split into two listed entities — Tata Motors Passenger Vehicles Ltd (TMPVL), which houses Jaguar Land Rover (JLR) and the electric vehicle (EV) business, and Tata Motors Ltd (TMCV), which comprises the CV operations.
At Wednesday’s high levels, TMPVL traded at ₹411.35 and TMCVL at ₹346.75, implying a combined value of about ₹758.10 per share — nearly 15% higher than Tata Motors’ pre-demerger closing price of ₹660.75. The combined market capitalisation of the two entities crossed ₹2.7 lakh crore after the listing.
Tata Motors CV arm Listing Impact on Indices
Tata Motors demerger and the subsequent separate listings of the commercial vehicle business are expected to trigger short-term technical adjustments in major indices such as the Nifty 50, as index providers revise Tata Motors’ weightage and representation. The earlier merged Tata Motors entity was a Nifty 50 constituent, and post demerger, both TMPVL and TMCV have been listed separately.
Post Tata Motors demerger, both Tata Motors Passenger Vehicles Ltd (TMPVL) and Tata Motors Ltd (Commercial Vehicles) are listed separately, increasing the Nifty 50 constituent count to 51 until rebalancing is completed.
According to NSE’s revised demerger rules, Tata Motors Passenger Vehicles — the demerged company — will remain part of the Nifty 50, while Tata Motors shares (Commercial Vehicles) will be included at a constant price for a few sessions before being excluded. This approach ensures minimal disruption during the transition period.
Future eligibility of Tata Motors CV arm
The inclusion of new Tata Motors Ltd (CV) in the major indices like the Nifty 50 in the long-term will depend on whether it meets the index’s eligibility criteria such as market capitalisation, free-float, and trading liquidity during subsequent index reviews.
Tata Motors Demerger: Impact on Passive Funds
For passive index funds and exchange-traded funds (ETFs), the listing of Tata Motors’ Commercial Vehicles arm will necessitate portfolio adjustments to reflect the revised index composition.
Funds tracking the affected indices will realign their holdings on the listing day — either retaining both Tata Motors entities if they qualify for inclusion, or divesting the non-eligible stock as per index methodology.
On Wednesday, Tata Motors share price ended 0.79% lower at ₹327.65 apiece, while Tata Motors Passenger Vehicles share price ended 1.28% lower at ₹402.30 apiece on the BSE.
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