Investor sentiment has turned toward Tata Motors’ upcoming listing of its Commercial Vehicle (CV) division, following the company’s demerger from the Passenger Vehicle (PV) business. October 14 served as the record date for the split, entitling shareholders to receive one Tata Motors Commercial Vehicle Ltd (TMCVL) share for every Tata Motors share held, as per the 1:1 ratio. The existing Tata Motors stock will now represent the PV business, which includes JLR, domestic PV (ICE + EV), and the stake in Tata Technologies. In the pre-market session, PV shares traded around ₹400, implying a ₹260.75 valuation for TMCVL based on Monday’s ₹660.75 closing. The new CV shares are expected to list by November, with analysts projecting near-term value unlocking and estimating the residual PV stock at about ₹380. Brokerages, including SBI Securities and Nomura, see long-term benefits from the Iveco acquisition and GST cuts that could boost CV demand from FY26. However, Ambit cautioned about short-term price correction post-demerger. Analysts noted that JLR continues to dominate revenues (87%) but faces challenges from production disruptions, global competition, and slower demand in key markets. Tata Motors shares slipped 1% on Wednesday.
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