Tata Motors’ commercial vehicle business will be dropped from key NSE and BSE indices starting Friday, following its recent separate listing on the stock exchanges. The change comes as part of Tata Motors’ strategic demerger, which split the automaker into two distinct entities—Tata Motors Passenger Vehicles Ltd (TMPV) and Tata Motors Commercial Vehicles Ltd (TMCV).
TMCV made a strong market debut earlier this week, listing at around ₹335 on the NSE—a premium of nearly 28% over its implied price of ₹260.75. The demerger became effective on October 1, with October 14 designated as the record date for identifying shareholders eligible for the split.
While the commercial vehicle arm begins independent trading, TMPV—home to Tata’s passenger vehicles, electric mobility division, and Jaguar Land Rover (JLR)—will continue to remain a part of the Nifty 50 index.
According to NSE’s index rebalancing rules, newly listed entities must build sufficient trading history, liquidity, and market representation before becoming eligible for inclusion in benchmark indices. As a result, TMCV will stay out of the major indices for now, though it will continue trading independently on both exchanges.
Market analysts note that the exclusion may lead to minor short-term adjustments by index-linked funds and exchange-traded funds (ETFs). However, they expect minimal long-term impact on the stock’s performance.
The demerger is widely seen as a major step in Tata Motors’ strategy to unlock value, sharpen business focus, and enable each vertical to pursue targeted growth plans. Experts believe the newly separated entities will attract distinct investor categories—TMPV appealing to EV and passenger car enthusiasts, while TMCV draws interest from commercial and infrastructure-focused investors.
The move marks a significant milestone for Tata Motors as it reshapes its corporate structure to enhance operational efficiency and market visibility.