Tata Motors and Tata Motors DVR shares experienced a remarkable surge today, with Tata Motors soaring over 4% to a record high of Rs 665.30 on BSE, while Tata Motors DVR jumped almost 18% to reach a record high of Rs 440. This substantial rise is attributed to a crucial company decision to normalize Tata Motors DVR shares, making them similar to common shares.
Tata Motors and Tata Motors DVR Shares Soar to Record Highs
The outstanding quarterly results of Tata Motors have further bolstered the shares. Currently, Tata Motors is trading at Rs 647.35 with a 1.24% gain, and Tata Motors DVR is trading at Rs 423.15 with a 13.41% gain.
The difference between Tata Motors and Tata Motors DVR lies in voting rights and dividends. Tata Motors DVR, or Differential Voting Rights, grants shareholders reduced voting rights but offers 5% higher dividends. This enables the company to raise funds without issuing additional shares.
Tata Motors Trading at Rs 647.35 with 1.24% Gain
Tata Motors first issued Tata Motors DVR shares in 2008, followed by a Qualified Institutional Placement in 2010 and a rights issue in 2015. However, recent changes in regulations prohibit issuing shares with separate voting rights, making Tata Motors the sole listed company to offer such shares. Now, Tata Motors plans to issue 7 ordinary shares in exchange for 10 Tata Motors DVR shares.
Tata Motors’ performance in the June quarter showed a significant improvement compared to the same period last year, as it reported a net profit of Rs 3203 crore, marking a positive shift from the loss of Rs 5006.60 crore in April-June 2022. Strong sales in its luxury car division, Jaguar Land Rover, and healthy margins in the passenger vehicles business contributed to the impressive profits. The company also experienced a 42% increase in revenue on an annual basis, reaching Rs 1.02 lakh crore.