Shares of Tata Motors Ltd will be in focus on Tuesday, October 14, as the company’s stock will begin trading adjusted for the demerger of its commercial vehicle (CV) business. The demerger of the commercial vehicle business will be officially announced. The demerger was earlier approved by the National Company Law Tribunal (NCLT).
The price of the demerged entity will be calculated based on the difference between the closing price of the currently listed entity on Monday, October 13, and the opening price of the listed entity discovered during the special pre-order session on Tuesday. The CV business will be maintained in all NSE and Sensex indices at a constant price as described above. The CV business will be dropped from all NSE and BSE indices at the last traded price, which will take effect three business days after the open listing date.
Date of CV Business Listing
No concrete date for the business listing has been determined yet, but the company has stated that the listing should take place within the next four to six weeks, or by mid-November. The new derivative contracts of the already listed entity will be reintroduced on Tuesday and will begin trading at 10 AM.
Possibility of Inclusion of Tata Motors’ CV Business in F and O
According to the current methodology, any stock considered for inclusion in the Futures and Options (F&O) segment needs to have a trading history of at least six months to be eligible. Hence, the demerged entity will not be immediately included in the F&O space.
