Tata Motors Demerger: A New Chapter Unfolds
The much-anticipated demerger of Tata Motors officially took effect on October 1, 2025, marking a significant restructuring of the Indian automotive giant into two distinct, publicly traded entities. This strategic move separated the commercial vehicles and passenger vehicles businesses, allowing investors to directly bet on the individual growth trajectories of each segment.
Market Debut and Initial Performance
On Wednesday, November 12, 2025, the newly formed Tata Motors Commercial Vehicle (TMCV) made its stock market debut with a resounding start. The stock listed on the National Stock Exchange (NSE) at ₹335 per share, commanding a substantial 28.48% premium over its implied value of ₹260.75. Similarly, on the BSE, it opened at ₹330.25, a 26.09% premium to its previous assessed value.
Following its listing, the TMCV share price demonstrated strong momentum, climbing to a high of ₹346.75 on the BSE and ₹345.00 on the NSE. A total of over 368 crore equity shares, each with a face value of ₹2, were listed under the ticker symbol ‘TMCVL’. As per a BSE directive, the stock will remain in the trade-for-trade segment for the initial 10 trading sessions to ensure an orderly price discovery process.
Meanwhile, the Tata Motors Passenger Vehicles (TMPV) stock began its independent trading journey earlier, on October 14, 2025—the record date set for the demerger. The shares were valued at approximately ₹400 per share after record-date adjustments. During the intraday session on Wednesday, the TMPV share price experienced a slight dip, falling nearly 1.24% to ₹403.30, before trading relatively flat at ₹404.95 around 11:50 AM.
Expert Analysis and Investment Outlook
Market experts are closely watching the performance of both stocks in this post-demerger environment. Anshul Jain, Head of Research at Lakshmishree, provided a technical perspective on TMPV. He noted that the stock has been consolidating in a broad range of ₹378–₹444 for nearly six months, building a strong base but lacking a confirmed breakout.
"For now, range traders can look to play the boundaries — accumulating near ₹378 with a target towards ₹444 remains a smart short-term strategy," Jain advised. "Momentum and volumes have been muted, indicating a wait-and-watch phase before a big directional move. Breakout traders, however, should stay patient for a decisive close above ₹444, which could unlock a fresh leg of rally. Until then, it’s a textbook range-bound opportunity."
On the other hand, the TMCV stock may see a period of volatility. Abhinav Tiwari, Research Analyst at Bonanza, highlighted that both retail and institutional investors are likely adjusting their portfolios following the split. "Although investors should be cautious as share prices face a technical risk amid index adjustments and portfolio adjustments," Tiwari stated. He added a positive long-term view, saying, "Tata Motors' CV business is going to benefit, given its market leadership and steady cash generations. Also, the acquisition of Italy’s Iveco deal would transform Tata’s global presence."
The demerger, based on the pre-demerger closing price of ₹660.75, had initially pegged the implied value of the commercial vehicles business in the range of ₹260–₹270 per share. The strong listing premium of TMCV indicates robust market confidence in the standalone prospects of the commercial vehicle division, even as the passenger vehicle arm finds its footing in the new market structure.
