For each share of Tata Motors that a shareholder now owns, they will get one share in the new commercial vehicles corporation.
Ahead of the company’s demerger, which takes effect on Wednesday, October 1, Tata Motors’ shares ended Tuesday’s trading session on the NSE 1.5% higher at Rs 682.55.
To increase concentration and take advantage of development prospects, the corporation authorized the demerger of its passenger and commercial vehicle divisions into two publicly traded companies in August of last year.
According to the proposal, one organization would house the commercial vehicle business and its associated investments, while the second corporation will house the passenger vehicle business, which includes electric cars, Jaguar Land Rover (JLR), and other investments.
Tata Motors Passenger cars Ltd (TMPVL) will be the new name for the passenger cars division after the demerger. In November, the commercial vehicles division will go public as Tata Motors Ltd (TML).
Dates of listing and demerger for Tata Motors
Mid-October will be the record date for the commercial vehicles unit is demerger, and in November, the listing will take place.
For each share of Tata Motors that a shareholder now owns, they will get one share in the new commercial vehicles corporation.
Although it is still optimistic about India’s demand for passenger cars, brokerage company Jefferies said in a note on Tuesday that it anticipates difficulties for JLR and is unsure about margin increases in the passenger car market and the Iveco purchase. Jefferies has maintained its “Underperform” rating on Tata Motors with a price target of Rs 575.