UPS AND DOWNS IN TATA MOTORS DVR SHARES PRICE
Tata Motors DVR (Differential Voting Rights) shares are a type of shares that give the shareholders
less voting rights
than the ordinary shares, but
more dividends
.
Tata Motors issued these shares in 2008 to raise funds without diluting the control of the Tata Group
1
.
Recently, Tata Motors announced a scheme of arrangement to reduce the number of DVR shares and issue ordinary shares to the DVR shareholders in the ratio of 1:1. This means that for every DVR share held, the shareholder will get one ordinary share of Tata Motors. The company said that this move will simplify its capital structure and enhance liquidity for the DVR shareholders234.
The announcement triggered a surge in the DVR share price, which rose
by nearly 18% on Wednesday, 26 July 2023, to close at Rs. 357.90 on the NSE. The ordinary share price of Tata motors also rose by 4.61% to close at Rs. 374.40 on the same day156. The DVR shares have been trading at a discount to the ordinary shares, which reflects the lower voting rights and market demand. The discount was around 50% in 2020, but it has narrowed down to around 5% after the announcement4.
Some analysts believe that the DVR shareholders will benefit from this scheme as they will get equal voting rights and higher market value for their shares. They also expect that the demand for Tata Motors shares will increase as the company is showing strong performance in its domestic and international markets, especially in its electric vehicle segment34. However, some investors may prefer to hold on to their DVR shares as they offer higher dividends and lower entry cost than the ordinary shares3.
If you are interested in buying or selling Tata Motors DVR shares, you can use the following links to access the stock market platforms:
NSE: https://www.nseindia.com/get-quotes/equity?symbol=TATAMTRDVR
BSE: https://www.bseindia.com/stock-share-price/tata-motors-ltd/tatamtrdvr/570001/
Moneycontrol: https://www.moneycontrol.com/india/stockpricequote/auto-ancillaries/tatamotors-dvr/TATAM57000