Tata Motors Commercial Vehicles Shares Not Appearing On Trading App? Here’s When You Can Trade
Tata Motors Commercial Vehicles Listing: Though the shares have been credited to Demat accounts, they will remain frozen until approval for listing and trading is granted by the stock exchanges.
Tata Motors Ltd. has carried out a major restructuring, splitting into two standalone firms: Tata Motors Passenger Vehicles Ltd. (TMPV) and Tata Motors Commercial Vehicles Ltd. (TMLCV). The much-anticipated demerger of the leading automaker officially came into force on Oct. 1.
The record date to determine the eligibility of shareholders for the allotment of shares in the 1:1 ratio was fixed as Oct. 14.
As part of the recent demerger, existing shareholders who held Tata Motors shares on or before the record date received an equal number of shares in the newly established Tata Motors Commercial Vehicles.
Nonetheless, many have encountered issues seeing or trading their TMLCV shares within popular trading platforms. This is due to delays associated with the separate stock listing process and pending regulatory approvals.
The stock will remain inactive until relevant listing and trading permissions are received from the stock exchanges.
"During the period from the date of allotment of shares by TMLCV up to the date of listing on BSE & NSE thereof, the shares of TMLCV shall not be available for trading on the stock exchanges. The process of obtaining listing and trading permission generally takes 45-60 days from the date of filing the necessary application with the stock exchanges," Tata Motors said in an exchange filing dated Oct. 9.
Tata Motors Commercial Vehicles Listing Date
Until the necessary approvals from stock exchanges, such as the BSE and NSE, are secured, the shares of Tata Motors Commercial Vehicles Ltd. (TMLCV) will be visible in shareholders' demat accounts but will remain non-tradable. Once permissions for listing and trading are granted, the shares will become active on trading platforms, and investors will receive formal notifications regarding the trading of the shares.
As indicated in the stock exchange notification, trading in TMLCV shares is likely to commence by late November.
Tata Motors informed the stock exchanges on Oct. 15 about the allotment of 3,68,23,31,373 fully paid equity shares of face value of Rs 2 each to the equity shareholders of the company in the ratio of 1:1 pursuant to the demerger scheme. The company also announced the “cancellation and reduction of the entire pre-scheme paid-up share capital of TMLCV comprising 5,00,000 fully paid-up equity shares of Rs 2 each, which were entirely held by the company.”
It noted that the resulting company has ceased to be a wholly owned subsidiary as of Oct. 15.
Regarding the name change and demerger, the Oct. 9 filing mentioned, “TML shall continue to be a listed entity. Pursuant to the scheme, Tata Motors Limited shall change its name to Tata Motors Passenger Vehicles Ltd. and shall carry on the passenger vehicles business, including its investments in the electric vehicle business and JLR.”
