Tata Motors shares surged over 7% in morning trade on Tuesday after the company announced demerger of its businesses into two separate listed entities. The decision, outlined in a recent regulatory filing, will see the company demerge its businesses into separate entities: one dedicated to commercial vehicles and related investments, and the other focused on passenger vehicles, including electric vehicles (EVs), Jaguar Land Rover (JLR), and associated investments.
As of 10:50 AM, Tata Motors share price hit a high of Rs 1,065.60 in trade today, surging as much as 7% against its previous close. However, the shares were trading at Rs 1,033, up 4.6% during the time of filing this story.
Tata Motors has turned out to be like a multtibager stock for investors as it has surged over 140% in the last one year. Infact, the stock has gained close to 35% this year so far itself.
The restructuring initiative announced yesterday, follows a period of successful independent operation for the company’s commercial vehicles, passenger vehicles, and JLR businesses, each led by their respective CEOs since 2021. By implementing this demerger, Tata Motors aims to provide greater autonomy to its business units, enabling them to pursue individual strategies for accelerated growth while enhancing accountability.
