Shares of Tata Motors DVR on Wednesday surged 18 percent to touch its 52-week high of Rs 440 per share. The reason for the rise in Tata Motors DVR is attributed to the company's conversion of it into ordinary shares of Tata Motors.
On Tuesday (July 25), Tata Motors announced that the company is going to cancel its DVR shares. Shareholders will get 7 ordinary shares of Tata Motors for every 10 DVR shares held. Earlier in January, the company had announced that ADRs of Tata Motors would be delisted from the New York Stock Exchange.
The full form of DVR is differential voting rights. Under this, companies issue shares to their investors with fewer voting rights than ordinary shares. For example, ordinary shares carry one vote on one stock, while DVR shares carry one vote on two or more shares. However, the number of votes on DVR shares depends on the company. Companies use it to dilute their voting rights.
The results of the first quarter of the financial year 2023-24 were released yesterday by Tata Motors. The consolidated profit of the company increased to Rs 3,202 crore. During this period, the company's income has increased by 42 percent to Rs 1,02,236.08 crore. The company's premium car segment Jaguar-Land Rover has performed exceptionally well. Due to this, the debt of the company has come down to Rs 4,17,000 crore.
The effect of the results of the company has also been seen on ordinary shares. Till 2 pm, Tata Motors shares are trading up 1.20 percent at Rs 647.40 per share. Today the stock opened at Rs 640 and touched a 52-week high of Rs 665.40 during the day.