Tata Motors shares climbed 7.9 per cent to hit a fresh 52-week high of Rs 1065.60 on Tuesday, raising the firm's market valuation by Rs 12,601.83 crore to Rs 3,40,633.29 crore.
This comes a day after the company decided to split its passenger and commercial vehicle businesses to better capitalise on growth opportunities.
The passenger vehicle business will include electric vehicles, Jaguar Land Rover and related investments while commercial vehicle businesses and related investments will be another entity. It is expected that the demerger will happen around mid-2025, following which all shareholders will have identical shareholding in the two newly listed entities, said reports.
"The demerger will have no adverse impact on employees, customers, and our business partners," Tata Motors Chairman N. Chandrasekaran had stated on Monday.
The stock is trading above the target prices set by Morgan Stanley at Rs 1,013 and JP Morgan's Rs 1,000. Morgan Stanley said the demerger move could lead to better value discovery and JP Morgan said the decision shows the company's confidence that passenger vehicle business can be self-sustaining.
