Tata Motors Share Price: Shares of Tata Motors were discovered at ₹400 per share during a special pre-open session, reflecting a 39.5% drop (Rs 260.75 per share) from the previous close, following the adjustment for the demerger of its Commercial Vehicles (CV) business.
Earlier this month, the company had set October 14 as the record date to determine shareholder eligibility for the demerged CV entity. Shareholders holding Tata Motors shares on this date will receive one share of the demerged entity, TML Commercial Vehicles Ltd (TMLCV), for every Tata Motors share they own.
The newly issued TMLCV shares are scheduled to be listed on both BSE and NSE on October 14. The demerger officially took effect on October 1, and the stock adjustment has been
implemented today.
The Passenger Vehicles (PV) unit, to be named Tata Motors Passenger Vehicles Ltd. (TMPVL), will comprise the domestic PV business, Jaguar Land Rover (JLR), stakes in Tata Sons, Tata Steel, and Tata Technologies, along with other investments.
The demerged CV unit will include the domestic CV business, the Iveco business (not reflected in price targets), and Tata Capital stake. Analysts have begun independently valuing the PV and CV units:
Nomura expects a nearly even split in valuations post-demerger, assigning ₹367 per share to the PV entity and ₹365 per share to the CV entity. Nomura noted that the PV business has gained momentum after GST cuts, with festive and pent-up demand driving sales. “The premiumization trend remains strong, with surging bookings for compact and micro SUVs, including the Punch and Nexon,” the brokerage highlighted.
Goldman Sachs wrote in its note that there will be a special trading session for the discovery of fair value of the Tata Motors Commercial Vehicles entity. “We currently value the consolidated Tata Motors business at ₹700 per share, which is made up of ₹236 for JLR, ₹436 per share for the India business, which comprises of ₹130 for the Passenger Vehicles and ₹306 for Commercial Vehicles, and another ₹26 per share, for the company’s stake in Tata Technologies,” the brokerage wrote. The Tata Technologies stake will be part of the Passenger Vehicles entity.
Nuvama expects the CV business to be listed within 30–45 days. It values the PV business at ₹410 per share, including ₹176 for India PV, ₹188 for JLR, ₹16 for JLR China JV, and ₹33 for Tata Technologies stake, incorporating a 20% holding company discount. The CV business is valued at ₹280 per share (₹264 India CV + ₹14 Tata Capital stake), also factoring in a 20% holding company discount.
Ahead of the record date, Tata Motors shares had closed 2.2% lower on Monday.
