Tata Motors
From today i.e. 24th October, Tata Motors shares will now be traded under the name Tata Motors Passenger Vehicles (TMPV). This renaming process has been completed after the recent demerger (splitting) of the company. BSE had already informed the traders that from Friday the name and ID of the share in the system will be changed from Tata Motors Ltd to TMPV.
This change is part of Tata Motors' large-scale restructuring plan, under which the company has divided its commercial vehicle (CV) and passenger vehicle (PV) businesses into two separate listed companies. According to the approved scheme, the commercial vehicle business will run under the name Tata Motors as before, while the passenger vehicle business which includes EVs (electric vehicles) and Jaguar Land Rover (JLR). Now Tata Motors will work under Passenger Vehicles (TMPV).
This demerger came into effect from October 1, and shareholders received shares in a 1:1 ratio. That means, for one share of Tata Motors, one share of the new commercial vehicle company. Its record date was fixed as 14 October. Tata Motors had announced this demerger in March 2024. The company said that this will provide operational freedom to both the units, decisions will be taken faster and there will be better utilization of capital (investment). Now the passenger vehicle unit will include the country's cars, electric vehicles and JLR business. Which the company considers as the main engine of its growth. At the same time, the commercial division will continue to focus on trucks, buses and defense vehicles.
Market experts believe that with this step it will be easier to show the performance and value of both the segments separately. Nomura has fixed the value of TMPV at ₹367 and TMLCV (Commercial Vehicle Unit) at ₹365, but said that there may be some technical fluctuations in the stock in the initial days. At the same time, SBI Securities has stated the trading range of TMPV to be ₹285₹384 and that of TMLCV to be ₹320₹470.
After the record date, the share price of Tata Motors fell by about 40%, but this fall was only technical, because now the value of both the companies is being calculated separately. Tata Motors' commercial vehicle unit is expected to be listed separately on the stock market in the coming weeks, pending regulatory approval.
