Tata Motors demerger a positive move, but no immediate gains seen

The demerger of Tata Motors will take around 12-15 months.

The company will be transformed into two listed firms with the commercial vehicles (CVs) business in one and passenger vehicles (PVs), including Jaguar Land Rover (JLR), in the other.

Shareholders will get one share in each entity for every one share they hold on the record date.

The demerger could eventually be positive and help unlock valuations. But it may not have an immediate impact on the valuations since the positives may already be factored into the share price.

The PV entity will hold considerably higher revenue due to the