InvestorQ : Why did Tata Motors DVR rally so sharply on 15th September when Tata Motors stock was more muted?
Moii Chavate made post

Why did Tata Motors DVR rally so sharply on 15th September when Tata Motors stock was more muted?

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Tisha Malhotra answered.
2 months ago
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On 15th September, while the stock of Tata Motors rallied by a little over 2%, the stock of Tata Motors DVR rallied 14% on the NSE. This rally was also supported by heavy volumes on the counter. Incidentally, Tata Motors DVR also scaled a 52-week high price on that day. DVR refers to differential voting right shares wherein investors voluntarily forego the right to vote on the equity holdings in exchange for higher dividends on shares.

In terms of major shareholders of Tata Motors group, Rare Enterprises belonging to Rakesh Jhunjhunwala, holds 1.97% in Tata Motors DVR and 1.15% in Tata Motors. While there has been a demand for the DVR due to its attractive dividend yield, there is also the fact that DVRs in India have traditionally quoted at a steep discount of 35-40% over the spot price. This has made DVR an attractive proxy for Tata Motors stock.

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