Tata Motors Demerger: Tata Motors Commercial Vehicles shares debut at 28% premium. Should investors stay on board?
Shares of Tata Motors Commercial Vehicles Ltd (TMLCV) made a strong market debut on Wednesday, listing at a 28% premium to its implied value, as investors cheered the standalone listing of India’s largest truck and bus maker amid optimism about a cyclical upturn in the commercial vehicle sector.
TMLCV shares opened at Rs 335 on the NSE, up 28.5% from the implied value of Rs 260.75, and at Rs 330.25 on the BSE, a 26.6% gain, reflecting solid investor appetite even as analysts expect near-term volatility.
Post-listing, the stock rose another 3% from its opening price to Rs 345 on the NSE, reflecting investor enthusiasm for the newly demerged business.
Jahol Prajapati, Research Analyst at SAMCO Securities, said the demerger “separates the…
