MUMBAI: Many shareholders of the recently demerged entity, TML Commercial Vehicles Limited (TMLCV), have noticed a surprising issue: while the new shares have been credited to their demat accounts, they are not visible on trading platforms and cannot be sold. The reason, according to the company, is simple and procedural: TMLCV shares are awaiting official listing approval from the stock exchanges.
The shares are currently frozen in investor demat accounts as the company awaits final clearance from both the BSE and NSE. This temporary restriction is a standard regulatory step to ensure the listing process is compliant and properly executed.
TMLCV has submitted its listing application, and the approval and commencement of trading are typically expected to take around 45–60 days from the submission date. This timeline suggests that trading in the new commercial vehicle entity could begin most likely next month, subject to the necessary regulatory green light.
A New Era Post-Demerger
The share allocation follows the demerger of Tata Motors, which became effective on October 14. The corporate restructuring successfully split the company into two distinct entities:
- TML Commercial Vehicles Limited (TMLCV): The new entity, which will eventually carry forward the commercial vehicle business (trucks, buses, and defence mobility) and is expected to house the proposed acquisition of Iveco Group NV’s commercial vehicle operations.
- Tata Motors Passenger Vehicles Limited (TMPV): The original listed company (now renamed) which controls the passenger vehicle, electric vehicle (EV), and Jaguar Land Rover (JLR) operations.
As per the approved scheme, all eligible shareholders who owned Tata Motors shares before the October 14 record date received one share of TMLCV for every one share they held.
Brokerages have largely welcomed the demerger as a value-unlocking exercise, allowing investors to focus on two distinct business cycles. SBI Securities, for instance, projected TMLCV could trade in the range of $\text{Rs } 320\text{–}470$ post-listing, while TMPV could trade between $\text{Rs } 285\text{–}384$.
Once the final listing permissions are secured from the exchanges, TMLCV will notify shareholders, and the shares will become visible and fully tradable on all major trading applications.
