Tata Motors demerger: Analysts take and what shareholders need to know

Tata Motors demerger: On Monday (March 4, 2024), Tata Motors' board approved the proposal to demerge the automaker's businesses into two separate listed companies. One entity will be the commercial vehicles business and its related investments, and another will be the passenger vehicles businesses, including PV, EV, JLR, and their related investments. 

Further, the NCLT scheme of arrangement for the demerger shall be placed before the board for approval in the coming months and will be subject to all necessary shareholders, creditors, and regulatory approvals, which could take a further 12–15 months to complete. 

Moreover, the demerger will have no adverse impact on employees, customers, or our business partners, Tata Motors said.

Also read: Tata Motors to demerge CV and PV businesses into separate listed companies

Anil Singhvi view

Zee Business Managing Editor, Anil Singhvi said that Tata Motors'  PV, EV, and JLR's valuation is around Rs 715 whereas, CV valuations stand at Rs 315. The deal will unlock value and the stock can see an 3 to 4 per cent upmove in Tuesday's trading session as demerger news is positive for investors. Singhvi recommends buying and holding Tata Motors shares till they reach Rs 1,500/Rs 2,000 levels. 

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