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Tata Motors Demerger: Tata Motors Passenger Vehicles Ltd set November 12, 2025, as the listing date for Tata Motors Commercial Vehicles post demerger.
Tata Motors Sets November 12 Listing Date for Commercial Vehicle Business
Tata Motors Demerger, Tata Motors CV Listing Date Announced: Tata Motors Passenger Vehicles Ltd will list its Commercial Vehicles arm on November 12, marking the completion of the demerger. Tata Motors’ long-awaited demerger became effective on October 1, officially separating its Passenger Vehicle (PV) and Commercial Vehicle (CV) businesses into two independent listed companies. With that, the name of existing Tata Motors Ltd was changed to Tata Motors Passenger Vehicles Ltd (TMPV).
“… we wish to inform that TMCV has intimated the Company today that it has received approval from BSE Limited and National Stock Exchange of India Limited for listing and trading of its equity shares, effective November 12, 2025,” Tata Motors PV Ltd said in the filing dated November 10.
Tata Motors Demerger Entitlement Ratio
Shareholders holding Tata Motors shares as of the record date — October 14 — have received one equity share of Tata Motors Commercial Vehicles Ltd (TMLCV) for every one share held in Tata Motors Ltd.
Investors have got shares of CV in their demat account so far, although they are in a dormant stage. Following the listing, investors will be allowed to trade in equity shares of Tata Motors CV.
Tax Implications of Tata Motors Demerger
Under India’s Income Tax Act, the allotment of TMLCV shares as part of the demerger does not trigger any immediate capital gains tax. This is because the transaction is not treated as a “transfer”, meaning shareholders do not face any tax liability when the new shares are credited to their demat accounts.
However, capital gains tax will apply when investors sell shares of either Tata Motors Passenger Vehicles (TMPV) or Tata Motors Commercial Vehicles (TMLCV).
To compute gains, investors must allocate the original purchase cost of Tata Motors shares between the two companies using a cost allocation ratio that will be announced by the company or its registrar (RTA).
This ratio is typically derived from the net book value (NBV) of each business rather than their market prices — often around 60:40, though the exact figure will be confirmed later.
Importantly, the holding period for the new TMLCV shares will be counted from the original date of purchase of Tata Motors shares — not from the demerger or share credit date. This determines whether any capital gains are short-term (STCG) or long-term (LTCG).
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
November 11, 2025, 07:24 IST
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