Tata Motors' Commercial Vehicles Soar Post-Demerger: A Stock Market Success Story

Tata Motors' commercial vehicles business launched on the stock market, witnessing a substantial 27% premium listing. The demerger split Tata into separate commercial and passenger vehicle entities. Market reactions were positive, with significant trading volumes, and the company's market capitalisation reaching Rs 1,21,516.94 crore.

Tata Motors made waves in the stock market as its commercial vehicles business was listed at a premium of 27% over the issue price, marking a significant post-demerger milestone. This listing took place over a month after the company completed its demerger, creating two distinct business arms.

The newly independent commercial vehicle (CV) business of Tata Motors began trading on the NSE at Rs 335, climbing up to Rs 345 during the session, before settling at Rs 330. On the BSE, the stock saw a high of Rs 346.75 and concluded the day at Rs 327.65. The favorable market response saw the company's market cap reach Rs 1,21,516.94 crore by the close of trading.

Trading volumes were robust with 3.13 crore shares changing hands on the NSE, and 21.25 lakh shares on the BSE. This strong performance comes as Tata Motors announced a restructuring, splitting its commercial and passenger vehicle units, with the latter renamed Tata Motors Passenger Vehicles Ltd. Operationally, Tata Motors reported a 10% rise in total commercial vehicle sales in October.

(With inputs from agencies.)