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HomeMarket NewsTata Motors PV business shares gain 3% as buying emerges from lower levels after price discovery
Tata Motors CV business will be maintained in all the NSE and Sensex index at a constant price, as described above. The CV business will be dropped from all NSE and BSE indices at the last traded price, which is effective at the open of the listing date + three business days.
Shares of Tata Motors Passenger Vehicles Ltd., the newly named listed entity of Tata Motors Ltd. fell over 5% on Tuesday, October 14, after a special pre-open price discovery session valued the listed entity at ₹400 per share. However, the stock saw buying interest from lower levels and subsequently recovered from the lows.
Today is the record date for the demerger of the Commercial Vehicles business of Tata Motors, which was approved by the NCLT earlier.
The PV unit, which will be named Tata Motors Passenger Vehicles Ltd. (TMPVL), will consist of the domestic PV business, Jaguar Land Rover, stake in Tata Sons, Tata Steel and Tata Technologies, along with other investments.
Here are some questions regarding the Tata Motors demerger answered by Nuvama Alternative & Quantitative Research:
How Will Domestic Passive Indices Treat The Demerged Entity?
Tata Motors CV business will be maintained in all the NSE and Sensex index at a constant price, as described above. The CV business will be dropped from all NSE and BSE indices at the last traded price, which is effective at the open of the listing date + three business days.
If the stock hits an upper circuit in any of these sessions, the exclusion will be postponed by two trading days each time.
Tentative Date of CV Business Listing
No concrete date has been determined yet, but the company has maintained that the listing should take place within the next four to six weeks, or by mid-November.
What Happens To Existing Futures Positions?
The ongoing derivative contracts expired on Monday itself. The new derivative contracts of the already listed entity will be re-introduced on Tuesday, and will begin trading at 10 AM.
Inclusion Of Tata Motors CV Business In F&O
As per the current methodology, any stock, for inclusion in the Futures & Options (F&O) space, needs to have a trading history of at least six months to be eligible for the same. Therefore, the demerged entity will not be immediately included in the F&O space.
Shares of Tata Motors Passenger Vehicles Ltd. are now trading 2.1% higher at ₹408.3.
First Published:
Oct 14, 2025 6:55 AM
IST
