Tata Motors demerger: Commercial Vehicle arm to list today; Check expected listing price
Shares of Tata Motors (TMCV), the commercial vehicle entity of Tata Motors, will kick-off its Dalal Street innings as a separate legal entity from today, that is, Wednesday, November 12.
- Nov 12, 2025,
- Updated Nov 12, 2025 9:09 AM IST
Shares of Tata Motors (TMCV), the commercial vehicle entity of Tata Motors, will kick-off its Dalal Street innings as a separate legal entity from today, that is, Wednesday, November 12. The commercial vehicle entity shall be known as Tata Motors. On the other hand, the existing entity has been renamed as Tata Motors Passenger Vehicles (TMPV).
The demerger was seen as a major step in unlocking long-term value for the investors of Tata Motors as it separated the fast-growing passenger vehicle and EV business from the more stable, cash-generating CV business, allowing investors to value each on its own strength. Market participants are expecting the listing of TMCV around Rs 320.
The demerger ratio was fixed in 1:1 ratio as of record date of October 14, 2025, which means that all the eligible shareholders will get one share of TMCV for every Tata Motors share held, implying no dilution of ownership. TMCV is a steady, cash-rich, value-driven play backed by improving policy and economic tailwinds.
The CV arm is supporting logistics, mining, and infrastructure expansion. With freight activity improving, commodity costs easing, and the GST rate cut to 18 per cent, demand for commercial vehicles is expected to rise sharply. Fleet replacement and new demand from construction and logistics players will add momentum, said Jahol Prajapati, Research analyst at SAMCO Securities.
"The business reported FY25 revenue of Rs 75,055 crore and Ebitda of Rs 8,856 crore, implying a healthy 11.8 per cent margin. Using Ashok Leyland’s EV/Ebitda multiple of 12.9 times, the fair value for TML CV comes around Rs 1.14 lakh crore, or roughly Rs 310-320 per share," he added. "The listing removes the 'conglomerate discount' and gives investors a focused bet on India’s commercial vehicle upcycle."
To recall, around Rs 262 or 40 per cent value was subtracted as value of Tata Motors (TMCV) on October 14, when the stock traded ex-demerger. The passenger vehicle unit independently kicked-off its trading at Rs 399, while the consolidated entity has settled at Rs 660.90 on October 13, a day before demerger.
SBI Securities expects the stock is likely to trade between Rs 320-470 post listing. The domestic CV industry is likely to start recovering in H2FY26 on back of tailwinds such as GST rate reduction on CVs, replacement demand and pickup in the logistics, infrastructure and construction sectors. "The integration of Iveco Group NV, most likely in FY27 will expose it to the global CV cycle.
The commercial vehicle arm Tata Motors (TMCV) will be listed 'T' Group or trade-to-trade segment. It means that intraday buy or selling will not be permitted in the stock and the circuit filter for the first 10 trading sessions will remain 5 per cent for either sides.
Shares of Tata Motors (TMCV), the commercial vehicle entity of Tata Motors, will kick-off its Dalal Street innings as a separate legal entity from today, that is, Wednesday, November 12. The commercial vehicle entity shall be known as Tata Motors. On the other hand, the existing entity has been renamed as Tata Motors Passenger Vehicles (TMPV).
The demerger was seen as a major step in unlocking long-term value for the investors of Tata Motors as it separated the fast-growing passenger vehicle and EV business from the more stable, cash-generating CV business, allowing investors to value each on its own strength. Market participants are expecting the listing of TMCV around Rs 320.
The demerger ratio was fixed in 1:1 ratio as of record date of October 14, 2025, which means that all the eligible shareholders will get one share of TMCV for every Tata Motors share held, implying no dilution of ownership. TMCV is a steady, cash-rich, value-driven play backed by improving policy and economic tailwinds.
The CV arm is supporting logistics, mining, and infrastructure expansion. With freight activity improving, commodity costs easing, and the GST rate cut to 18 per cent, demand for commercial vehicles is expected to rise sharply. Fleet replacement and new demand from construction and logistics players will add momentum, said Jahol Prajapati, Research analyst at SAMCO Securities.
"The business reported FY25 revenue of Rs 75,055 crore and Ebitda of Rs 8,856 crore, implying a healthy 11.8 per cent margin. Using Ashok Leyland’s EV/Ebitda multiple of 12.9 times, the fair value for TML CV comes around Rs 1.14 lakh crore, or roughly Rs 310-320 per share," he added. "The listing removes the 'conglomerate discount' and gives investors a focused bet on India’s commercial vehicle upcycle."
To recall, around Rs 262 or 40 per cent value was subtracted as value of Tata Motors (TMCV) on October 14, when the stock traded ex-demerger. The passenger vehicle unit independently kicked-off its trading at Rs 399, while the consolidated entity has settled at Rs 660.90 on October 13, a day before demerger.
SBI Securities expects the stock is likely to trade between Rs 320-470 post listing. The domestic CV industry is likely to start recovering in H2FY26 on back of tailwinds such as GST rate reduction on CVs, replacement demand and pickup in the logistics, infrastructure and construction sectors. "The integration of Iveco Group NV, most likely in FY27 will expose it to the global CV cycle.
The commercial vehicle arm Tata Motors (TMCV) will be listed 'T' Group or trade-to-trade segment. It means that intraday buy or selling will not be permitted in the stock and the circuit filter for the first 10 trading sessions will remain 5 per cent for either sides.