Following the demerger of Tata Motors, many investors are wondering why the shares of Tata Motors Commercial Vehicles Limited (TMLCV) aren't showing up in their portfolios despite the allotment. Here's a breakdown of the situation.
Demerger Details
Tata Motors officially split into two separate entities: Tata Motors Passenger Vehicles Limited (TMPVL), which includes passenger vehicles, electric vehicles (EVs), and Jaguar Land Rover (JLR), and Tata Motors Commercial Vehicles Limited (TMLCV), focusing on trucks, buses, and commercial vehicles. The demerger, effective from October 1, 2025, had a record date of October 14, 2025. Shareholders received one share of TMLCV for every share of Tata Motors held. A total of 3,68,23,31,373 equity shares of TMLCV, with a face value of ₹2 each, have been allotted to eligible shareholders.
Why Shares Aren't Visible
Although the TMLCV shares have been credited to your demat account, they are currently frozen and cannot be traded. This is because TMLCV is in the process of getting listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Listing approval from these exchanges is mandatory before trading can commence. Tata Motors has already submitted the necessary applications to the stock exchanges. The listing process typically takes 45-60 days from the date of application. Therefore, the TMLCV shares are expected to list in late November or early December 2025.
Company Confirmation
TMLCV has confirmed that the allotted shares will remain frozen in the depository system until the stock exchanges grant formal listing and trading permissions. Shareholders will be unable to trade these shares until trading permission is officially notified by the Stock Exchanges on their respective websites. The company will notify shareholders once trading becomes active.
What Shareholders Should Do
While waiting for the listing, shareholders can verify the credit status of their TMLCV shares directly with their Depository Participant (DP). Investors can also register for CDSL's EASI (Electronic Access to Securities Information) facility to easily check their demat account details.
Impact on Tata Motors Share Price
On October 14, 2025, Tata Motors' stock price experienced a technical adjustment, dropping nearly 40%. This adjustment reflects the separation of the CV operations and doesn't necessarily indicate a negative market sentiment. The pre-demerger closing price of Tata Motors was ₹660.75, and on October 14, the stock was discovered at ₹400 per share on the NSE. This implied a derived value of around ₹260.75 per share for TMLCV.
Valuation
Post-demerger, Tata Motors' Passenger Vehicle (PV) business, including JLR and the Electric Vehicle (EV) division, has been valued at approximately ₹1.45 lakh crore. The Commercial Vehicle (CV) arm is expected to hold a comparable valuation. While indicative valuations peg the CV business around ₹260 – ₹270 per share, analysts broadly agree that the actual listing price could range between ₹300 and ₹470, depending on market sentiment and demand revival in the CV industry.
Strategic Rationale
The demerger aims to unlock shareholder value by allowing investors to value each business independently. It enables both TMPVL and TMLCV to focus on their core operations, improving efficiency and attracting targeted investors. Each company can now pursue acquisitions, partnerships, and international expansion independently.
