Tata's CV business lists, 27 years after Ratan Tata’s wish

More than a quarter of a century after the late Ratan Tata first hinted at Tata Motors splitting its operations into two companies, one making cars and the other trucks and buses, the automaker has finally consummated the demerger.

- Ayaan Kartik & Nehal Chaliawala

Shares of Tata Motors Ltd, formerly known as Tata Motors Commercial Vehicles, started trading on the exchanges on Wednesday after the trucks and bus business was demerged from Tata Motors Passenger Vehicles Ltd, which now houses the car business including British unit Jaguar Land Rover.

The shares of the commercial vehicle company, which will also house recently acquired Iveco, closed at a 27% premium to the discovered price at ₹330 each on the NSE on Wednesday. The passenger vehicle firm, which started trading on 14 October, closed 1.3% down from Tuesday at ₹404.55. Com-

paratively, the Nifty Auto index gained 1.2%.

At these prices, Tata Motors Ltd has a market capitalization of about ₹1.2 trillion, and Tata Motors Passengers Vehicles, about ₹1.5 trillion. Before the demerger, the unsplit Tata Motors was valued at ₹2.4 trillion on 13 October—marking a 12.5% jump in post-demerger value of the entities.