Delhi/Mumbai, October 14, 2025 — Following the company’s structural demerger, Tata Motors’ shares had a robust recovery on October 14, jumping almost 4% in early trading following a special price discovery session.
Good Start Following Price Discovery
The pre-open price discovery window, which took place between 9:00 and 10:00 a.m., saw the stock open on the National Stock Exchange (NSE) at ₹400 per share. After a few hours of trade, the share price quickly gained momentum and reached about ₹415.
The separation of the CV business from the parent firm was the sole reason for the decline from its previous close of about ₹660 to ₹400. As the PV division’s independent worth became more apparent to the market, investor sentiment remained positive in spite of this change.
For each share they currently own in Tata Motors Limited, current shareholders will get one share of Tata Motors Commercial Vehicles (TMLCV) as part of the demerger plan. A major turning point in the company’s corporate reorganization journey was reached when the record date for eligibility was set at October 14, 2025.
Analysts’ View: Wary of Short-Term Moves, Positive on Structure
The demerger has been generally embraced by market analysts, who see it as a calculated effort to increase shareholder value and give both business divisions more concentration.
Analysts claim that splitting the PV and CV companies enables each to pursue separate growth plans, expedite decision-making, and draw in investors with specialized knowledge of the market. Strong consumer demand, premiumization, and a strong product pipeline are anticipated to boost the PV company, which comprises the successful domestic passenger car portfolio of Tata and Jaguar Land Rover (JLR).
Conversely, the CV arm is probably going to draw interest from investors looking to learn more about India’s growing logistics and infrastructure industries.
Read Also – LG Electronics India Shares Skyrocket 48% on Market Debut — A Record-Breaking IPO Listing
Analysts Divided Between PV and CV Arms in the Valuation Outlook
The valuations of the PV and CV companies are almost similar, according to brokerage estimates, suggesting a balanced corporate split. Over the coming years, the passenger car division is anticipated to provide consistent earnings growth, bolstered by JLR’s worldwide recovery and robust brand recall.
Due to the strong demand for commercial vehicles brought on by the industrial recovery and the government’s infrastructure push, the CV division is anticipated to generate steady revenue in the interim.
Considering the contributions from its operations in India, JLR, and its ownership in Tata Technologies, some analysts place Tata Motors’ consolidated fair value at about ₹700 per share.
Read Also – INOX Green Hits Record High as Shares Jump 5% – What’s Behind the Rally?
Investor Attitude Stays Upbeat
Investor trust in Tata Motors’ long-term ambition is indicated by the positive market response after the price discovery session. The demerger is viewed as a structural change that increases the efficiency of capital allocation and provides each company unit with greater financial visibility.
According to market participants, the decision gives Tata Motors greater operational transparency and agility by putting it in line with international automotive counterparts that run distinct listed corporations for various market sectors.
Investors are confident that both the PV and CV arms will produce robust independent growth in the upcoming years, notwithstanding the prospect of short-term adjustments.