Tata Motors shares soared as high as 5.85 per cent on October 1, jumping to an intraday high of Rs 720 and closing at Rs 718 apiece on the NSE, as the company’s landmark demerger officially went live.
Yesterday’s closing price was ₹680.20, making today’s closing gains of 5.56 per cent the strongest single-session surge in months.
Demerger = market excitement
With the split, Tata Motors will be renamed Tata Motors Passenger Vehicles Ltd (TMPV), housing the passenger car, electric vehicle and Jaguar Land Rover businesses.
Its commercial vehicle arm becomes Tata Motors Commercial Vehicles Ltd (TMLCV). Shareholders on the October 14record date are set to receive one TMLCV share for every Tata Motors share held.
Strategic Netherlands move
Adding further to the buzz, Tata Motors earlier this week revealed that its Singapore subsidiary, TML CV Holdings Pte Ltd, incorporated TML CV Holdings B.V. in the Netherlands on September 29.
This came at the heels of the latest €3.8 billion takeover of Italy’s Iveco Group, under which the tender offer must be routed through a Dutch vehicle.
The latest move clears a critical path for completing the deal, which excludes Iveco’s defence business.
Tata Motors stock performance today
Today’s volumes for Tata Motors crossed 20 million shares, over three times the recent average, before closing 5.56 per cent higher.
While the Sensex gained roughly 0.89 per cent and the Nifty around 0.90 per cent, Tata Motors outperformed by delivering returns many times higher.
Although the stock has fallen nearly 30 per cent over the past year amid challenges at Jaguar Land Rover and a recent cyberattack, the demerger and Netherlands holding news helped revive the Indian automaker giant. TMLCV is expected to list separately by November.