Tata Motors demerger: CV shares entitlement, swap ratio, listing timeline

Tata Motors demerger: Tata Motors’ long-awaited corporate restructuring has entered its final phase, with shareholders now receiving shares of the newly carved-out commercial vehicles (CV) entity in their demat accounts. The demerger, which legally took effect on October 1, 2025, officially splits Tata Motors into two independently listed companies: one for the Commercial Vehicles (CV) business and the other for Passenger Vehicles (PV), including electric vehicles (EVs) and Jaguar Land Rover (JLR).  CATCH TATA MOTORS CV SHARE PRICE UPDATES LIVE

Tata Motors CV share entitlement for shareholders

Under the approved Composite Scheme of Arrangement, Tata Motors shareholders are entitled to one equity share of ₹2 each in Tata Motors Commercial Vehicles Ltd (TMLCV) for every one equity share of ₹2 held in Tata Motors Limited as of the record date, October 14, 2025.

 

 

The 1:1 entitlement ensures that overall ownership remains unchanged, now split between two tradable entities.

 

“All shareholders of Tata Motors Limited shall continue to have identical shareholding in both the listed entities,” the company had noted in an earlier filing.

 

Eligible investors saw TMLCV shares credited to their demat accounts on October 16, 2025. These shares are currently frozen and cannot be traded until listing approvals are granted by BSE and NSE.

 

“During the period from the date of allotment of shares by TMLCV up to the date of listing on BSE and NSE, the shares of TMLCV shall not be available for trading. The process of obtaining listing and trading permission generally takes 45–60 days from the date of filing the necessary applications,” Tata Motors said in a regulatory filing on October 9.  ALSO READ | Tata Motors CV shares to list on November 12 after demerger

TMLCV shares tentative listing timeline

Market observers expect TMLCV shares to list by late November or early December 2025, provided there are no procedural delays. Companies completing a demerger typically file separate listing applications with each exchange, with approvals taking six to eight weeks.

 

Once listed, TMLCV shares will trade independently of Tata Motors Passenger Vehicles Ltd, which continues to hold PV, EV, and JLR businesses.

No capital dilution or cash outlay

The demerger involves no cash payment or surrender of shares. The 1:1 entitlement ensures continuity of ownership, with no dilution. Guidance on the cost of acquisition for shares in both entities will be issued in due course.  ALSO READ | Tata Motors CV vs Tata Motors PV: Which stock could re-rate after demerger?

Strategic rationale

Announced on March 4, 2024, the restructuring marks a milestone in Tata Motors’ multi-year transformation, aiming to give both businesses sharper strategic focus, flexibility in capital allocation, and unlock shareholder value.

 

Tata Sons Chairman N. Chandrasekaran described the demerger as a “logical progression” following the subsidiarisation of PV and EV operations in 2022.

 

“This demerger will help our businesses capitalise on market opportunities with greater focus and agility, leading to enhanced value for shareholders and better growth prospects for employees,” he said.

 

Post-demerger, Tata Motors Limited will house the commercial vehicles business, while Tata Motors Passenger Vehicles Limited will continue managing PV, EV, and JLR operations.  ALSO READ | Tata Motors demerger impact: Changes in F&O lot size, OI, Strikes explained

Investor snapshot

Record date: October 14, 2025

 

Entitlement ratio: 1 TMLCV share for every 1 Tata Motors share held

 

Demat credit date: October 16, 2025

 

Trading status: Shares currently frozen; not yet tradable

 

Expected listing: Late November–early December 2025

 

Capital impact: No dilution or cash outlay required

 

Until their D-street debut, investors will see TMLCV shares reflected but non-tradeable in their demat accounts. Once listed, the CV stock will debut under a separate ticker, allowing independent trading of the two Tata Motors companies.