Tata Motors Commercial Vehicles IPO Listing on November 12

Overview of the Listing

Tata Motors Commercial Vehicles (TMCV) is set to debut on Indian stock exchanges on November 12, according to an official notice from the Bombay Stock Exchange (BSE). The new entity will trade under the ‘T’ Group of Securities, marking a significant milestone following the demerger of Tata Motors into two separate listed companies.

Demerger Details

The Tata Motors demerger, which became effective on October 1, resulted in the company splitting into two independent entities: Tata Motors Commercial Vehicles and Tata Motors Passenger Vehicles. As per the demerger, shareholders received one TMCV share for every Tata Motors share held as of the record date, which was October 14.

Equity and Trading Information

According to the BSE notice, over 368 crore equity shares with a face value of ₹2 each will be listed under the ticker TMCVL. For the first ten trading sessions, the shares will remain in the trade-for-trade segment. TMCV shares will be listed on both the BSE and NSE.

Corporate Structure and Focus Areas

Post-demerger, Tata Motors Commercial Vehicles has been renamed Tata Motors and will focus exclusively on commercial vehicles. The newly formed Tata Motors Passenger Vehicles, already trading as a separate entity, will manage passenger vehicles, electric vehicles (EVs), and the Jaguar Land Rover (JLR) business.

The BSE notice highlighted the equity adjustments: before the demerger, Tata Motors Limited had a paid-up capital of ₹10,00,000 consisting of 5,00,000 shares of ₹2 each, which has now been cancelled. Post-demerger, the issued, subscribed, and paid-up equity capital stands at ₹7,36,46,62,746, comprising 3,68,23,31,373 fully paid shares of ₹2 each.

Valuation Insights

Tata Motors Passenger Vehicles (TMPV) began trading independently from October 14, with a post-record date valuation of approximately ₹400 per share. The commercial vehicles arm, yet to be listed, carries an implied value of ₹260–270 per share based on the pre-demerger closing price of ₹660.75.

Analyst Expectations for TMCV Shares

Market analysts are optimistic about the commercial vehicles arm. SBI Securities projects that TMCV shares could trade in the range of ₹320–₹470 post-listing. Positive industry tailwinds such as the reduction of GST on commercial vehicles from 28% to 18%, rising replacement demand, and growth in the infrastructure, construction, and logistics sectors are expected to support performance. Additionally, the anticipated integration of Iveco Group NV in FY27 may provide global commercial vehicle exposure.

Recent Performance of Tata Motors Passenger Vehicles

On Monday, Tata Motors Passenger Vehicle shares closed 1.22% higher at ₹410.60 on the BSE, reflecting investor confidence in the newly independent entity.

About the Author

Sorit Chaudhary

Author

View All Posts