Tata Motors CV and Groww Make Blockbuster Stock Market Debuts on November 12

Wednesday, November 12, 2025, marked a historic day for Indian stock markets as two major corporate events unfolded simultaneously—Tata Motors’ commercial vehicle arm made its long-awaited debut following a strategic demerger, while fintech giant Groww listed after one of the year’s most anticipated IPOs. Both listings exceeded market expectations, providing strong gains to investors and reinforcing bullish sentiment across Dalal Street.

The benchmark Sensex closed 595 points higher at 84,466.51, while the Nifty 50 advanced 181 points to settle at 25,875.80, extending gains for the third consecutive session. The broader market also participated enthusiastically, with the Nifty Midcap 100 hitting a record high of 60,902.[1][2]

Tata Motors CV Lists at 28% Premium After Decade-Long Restructuring

The newly demerged Tata Motors Commercial Vehicles (TMCV), now trading as Tata Motors Ltd, opened at ₹335 per share on the NSE, reflecting a robust 28.5% premium over its discovered price of ₹260.75. On the BSE, the stock debuted at ₹330.25, marking a 26% premium.[3][4][5]

This listing represents the culmination of Tata Motors’ decade-long restructuring journey that officially took effect on October 1, 2025. The demerger split the automotive giant into two independent entities: the commercial vehicle business and the passenger vehicle division (which includes electric vehicles and Jaguar Land Rover).[6][7][8]

Under the demerger scheme, shareholders received one share of the CV business for every Tata Motors share held as of the record date (October 14, 2025), ensuring zero dilution of ownership. The discovered price of the passenger vehicle arm was ₹400 per share, which when added to the CV arm’s listing price of ₹335, exceeded Tata Motors’ pre-demerger trading level of ₹660.75.[8][9][4]

The commercial vehicle business holds a dominant position in India’s CV market and stands to benefit from several tailwinds. Analysts point to rising infrastructure spending, expanding logistics demand, GST rate reduction from 28% to 18%, and the government’s push for electric commercial vehicles as key growth drivers.[10][9]

“The CV segment lies at the core of India’s growth journey, driving progress in logistics, mining, and infrastructure development,” noted industry analysts. The listing eliminates the “conglomerate discount” that often plagued Tata Motors’ valuation, allowing investors to assess each business independently.[9][10]

Prashanth Tapse, Senior Vice-President (Research) at Mehta Equities, emphasized that the CV arm is likely to see stronger momentum this financial year compared to the passenger vehicle business. “I think CV will be performing well when we talk about the two companies in this financial year,” Tapse told Business Today.[11]

The stock traded in the Trade-for-Trade (T Group) segment for the first ten sessions, meaning no intraday trading was permitted initially—a standard regulatory requirement for newly listed or spun-off companies. By the end of the trading day, TMCV shares settled around ₹330, still maintaining a premium of over 26% from the implied valuation.[5][12][6][8][3]

Groww Makes Strong Debut at 14% Premium

India’s largest stock brokerage platform, Groww (officially Billionbrains Garage Ventures Ltd), made an impressive stock market debut on November 12. Shares listed at ₹114 on the BSE, a 14% premium over the issue price of ₹100, while the NSE saw the stock open at ₹112, representing a 12% gain.[13][14][15]

The listing exceeded grey market expectations, where unlisted shares were trading at only a 5% premium ahead of the debut. By mid-morning, the stock climbed to ₹121.25, giving per-lot gains of nearly ₹20,000 to investors who were allotted shares.[15][16][13]

Groww’s Growth Story and Market Position

Founded in 2016, Groww started as a mutual fund distribution platform and quickly expanded into equities, IPOs, ETFs, digital gold, and derivatives trading. The Bengaluru-based fintech platform has built a customer base exceeding 10 crore (100 million) users, capturing approximately 26% market share in India’s retail investing space.[14][18][11]

In FY25, Groww reported operating revenue of ₹3,901 crore, up 49% year-on-year, and a profit after tax of ₹1,824 crore—a remarkable turnaround from previous losses. The company’s EBITDA margin improved to 60.8%, supported by organic user growth and reduced marketing costs.[13][15]

Prashanth Tapse of Mehta Equities observed, “At listing, Groww’s implied valuation appears justifiable, backed by rapid customer growth, strong brand recall in retail investing, rising market share in F&O and mutual fund distribution, and a scalable digital business model with low incremental cost”.[18][13]

Expert Recommendations: Hold or Book Profits?

Market experts offered mixed guidance for investors. Shivani Nyati, Head of Wealth at Swastika Investmart, recommended booking partial profits while holding the remaining position for the medium to long term with a stop-loss at ₹80. “Despite strong growth, concerns around high valuation multiples, margin pressures, and regulatory risks in the fintech and brokerage space are weighing on cautious investors,” she cautioned.[18]

Tapse, however, advised a longer-term approach. “We recommend allotted investors to hold for the long term, given the company’s structural strengths and growth potential, while acknowledging short-term risks. Our medium-term target is ₹125–130,” he stated.[11][18]

The primary regulatory concern stems from SEBI’s tightening oversight of the futures and options (F&O) segment—a key revenue driver for Groww and other discount brokers. Potential restrictions on weekly options and stricter margin norms could impact trading volumes and future revenue growth.[13][18]

Broader Market Performance: IT and Auto Lead the Charge

Beyond the two blockbuster listings, the broader market demonstrated strength across sectors. IT and auto stocks led the rally, with the IT index rising 1% and the auto index gaining 1%.[19][2]

Asian Paints emerged as the top gainer in the Nifty 50, surging 6.58% to close at ₹2,832 after reporting a 43% jump in consolidated net profit to ₹994 crore for Q2 FY26. The paint major’s strong performance came on the back of 10.9% volume growth in its domestic decorative business and a 6% increase in revenue.

Tech Mahindra advanced 3.48%, Tata Consultancy Services gained 2.56%, and Bajaj Finserv rose 2.49%, reflecting renewed investor confidence in the IT sector. Adani Enterprises surged 5% after announcing details of its ₹25,000 crore rights issue.[2]

On the losing side, Tata Steel fell 1.29%, Shriram Finance declined 1.23%, and Bharat Electronics dropped 0.91%.[2]

The Nifty Midcap 100 index advanced 0.79% to close at a record high of 60,902, with Biocon leading gains at 5.22% after posting a consolidated net profit of ₹85 crore. The Nifty Smallcap 100 index rose 0.82% to 18,250.[2]

For Tata Motors CV:

• Performance of the commercial vehicle business in the upcoming festive and construction season
• Progress on the proposed Iveco acquisition
• Quarterly sales data and market share trends
• Development of electric commercial vehicle portfolio
• Management commentary on order book and fleet replacement cycles

For Groww:

• SEBI’s regulatory stance on F&O trading restrictions
• Quarterly user growth and assets under management (AUM) figures
• Revenue mix between mutual funds, equities, and F&O segments
• Competitive response from established players like Zerodha and Angel One
• First post-listing earnings report in Q3 FY26

Broader Market Triggers:

• Conclusion of Q2 FY26 earnings season
• Release of October 2025 CPI inflation data
• Reserve Bank of India’s monetary policy decision in December
• Progress on India-US trade deal negotiations
• Foreign Portfolio Investor (FPI) flows and domestic institutional buying patterns

Market Outlook and Investor Sentiment

The strong debuts of both Tata Motors CV and Groww reflect robust investor confidence in India’s growth story. The successful demerger demonstrates that complex corporate restructuring can unlock shareholder value, while Groww’s premium listing validates the business model of digital-first fintech platforms.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted, “Sentiments have turned for the better with news of an India-US trade deal getting finalized soon and the exit polls indicating a decisive victory for the NDA in Bihar. From the fundamental perspective, there is room for optimism since GDP growth is robust and earnings growth for FY27 appears bright”.[23]

However, he also cautioned that foreign institutional investors (FIIs) might sell at higher levels, as they continue to face pressures from the ongoing AI trade globally. “So long as the AI trade continues, a sustained reversal of FII money appears unlikely,” Vijayakumar added.[23]

The positive market momentum was further supported by foreign portfolio investors’ reduced selling pressure. On November 11, FPIs sold shares worth ₹803 crore net, while domestic institutional investors were net buyers at ₹2,188 crore, providing critical support to the market.[24][23]

Disclaimer: This article is only for information purposes and is not investment advice. Before investing, do your own research.