Tata Motors shares rise 2%. What should investors do after demerger?
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Tata Motors shares rose as much as 2.4% on Thursday to Rs 400.30 on the BSE, as investors digested the long-awaited demerger of the automaker’s passenger and commercial vehicle businesses. But while the dust is settling on one of India’s most anticipated demergers, the real question for investors is what comes next, and when the promised “value unlocking” will actually materialize. October 14 marked the record date for the separation of Tata Motors’ passenger and commercial vehicle divisions. Shareholders who held the stock before that date will receive one share of Tata Motors Commercial Vehicles Ltd (TMLCV) for every share held in Tata Motors Passenger Vehicles Ltd (TMPV). The company expects the shares of the new CV entity to be credited within 30–45 days, pending regulatory approvals. The listing of TMLCV on the NSE and BSE is expected by late November or early December. With Tata Motors’ pre-demerger closing price at Rs 660.75 and th...