Shares of Tata Motors Passenger Vehicles Ltd. (TMPVL), the newly listed passenger vehicle arm of Tata Motors Ltd., gained nearly 3% on Wednesday as buying interest emerged from lower levels following Tuesday’s sharp decline.
On October 14, shares of the newly demerged PV business fell over 5% after the special pre-open price discovery session valued the entity at Rs 400 per share. However, investors later accumulated the stock at lower prices, aiding a mild recovery.
Today marks the record date for the demerger of Tata Motors’ Commercial Vehicles (CV) business, which received approval from the National Company Law Tribunal (NCLT) earlier.
The PV unit — Tata Motors Passenger Vehicles Ltd. — comprises the domestic PV business, Jaguar Land Rover, stakes in Tata Sons, Tata Steel, and Tata Technologies, along with other investments.
According to the exchange filing, the CV business will continue to appear in NSE and Sensex indices at a constant price until delisting, which will occur three business days after the listing date. If the stock hits an upper circuit during this period, the exclusion will be postponed by two additional trading sessions each time.
While the listing of the CV business is expected within four to six weeks, or by mid-November, the newly formed entity will not be immediately eligible for F&O trading, as it requires a six-month trading history to qualify under the current norms.
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