Tata Motors’ landmark demerger has unlocked significant shareholder value, with the combined market capitalisation of its two newly listed entities — Tata Motors (Commercial Vehicles) and Tata Motors Passenger Vehicles Limited (TMPVL) — crossing ₹2.7 lakh crore on Wednesday.
The commercial vehicle arm debuted at ₹335 per share, a 28.5% premium to its discovered price of ₹260.75, giving it a market capitalisation of over ₹1.2 lakh crore. The passenger vehicle arm, which includes electric vehicle (EV) operations and Jaguar Land Rover (JLR), was trading at ₹407.6 per share, valuing it at more than ₹1.5 lakh crore.
The combined price of both entities at ₹742.6 in Wednesday’s opening trade stood 12.4% higher than Tata Motors’ pre-demerger share price of ₹660.75, reflecting strong market response to the restructuring.
The demerger, effective October 1, 2025, created two focused listed entities — a commercial vehicles business generating stable cash flows, and a passenger vehicles and EV division positioned for faster growth. Each shareholder received one share of Tata Motors (CV) for every share held in the parent company as of the record date, October 14, 2025.
The restructuring, approved by the board in August 2024 and later sanctioned by the NCLT, Mumbai Bench, was aimed at enabling sharper strategic focus and independent capital allocation for each business.
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