Tata Motors Commercial Vehicles (TMCVL) shares will be listed on the Indian stock exchanges on Wednesday (November 12). The listing of Tata Motors ’commercial vehicle unit comes following the conclusion of Tata Motors demerger into two independent entities.
The demerger took effect from October 1 and the demerger record date was October 14. As per the share entitlement ratio of 1:1, investors received one share in the Commercial Vehicle business for every Tata Motors share held as of the record date.
Over 368 crore equity shares of face value Rs2 each will be admitted to trading under the ticker TMCVL. The stock will remain in the trade-for-trade segment for the first 10 sessions. The scrip will debut on both the stock exchanges - BSE and NSE.
“Prior to the Scheme, the paid-up Equity Capital of Tata Motors Limited was ₹10,00,000/- consisting of 5,00,000 shares of Face Value of Rs. 2/- each which has been cancelled. The issued, subscribed and paid-up equity capital of Tata Motors Limited post Arrangement is Rs. 7,36,46,62,746/- consisting of 3,68,23,31,373 equity shares of face Value of Rs. 2/- each fully paid,” according to BSE notice.
Tata Motors Commercial Vehicles has been renamed Tata Motors and this company will solely focus on commercial vehicles. On the other hand, Tata Motors Passenger Vehicles (TMPVL) will oversee the passenger vehicle business, electric vehicles (EVs) and British subsidiary Jaguar Land Rover (JLR).
TMPVL has already started trading as a separate entity from October 14. TMPV was valued around Rs 400 per share, while the value of the commercial vehicles arm was at ₹261 per share, based on the pre-demerger closing price of Rs 660.75.