Tata Motors' DVR discount near two-year high
The price differential between ordinary shares of Tata Motors and the ones with differential voting rights, or DVRs, is most in nearly two years. On Wednesday, shares of the automaker closed at Rs 469.5, 41.2 per cent higher than the DVRs which quoted at Rs 276.2. Since their issuance in 2008, the DVRs have always traded at a discount to the ordinary shares, however, the premium has widened from 20 per cent last January to current level of around 41 per cent. Interestingly, investors have shunned the DVRs despite stock exchanges allowing them to be part of indices. In April 2016, the National Stock Exchange (NSE) added Tata Motors DVR to its flagship Nifty 50 index. With effect from June 19, the DVRs will also be part of the benchmark Sensex index. Inclusion to the premier Sensex and Nifty indices is considered to be auspicious for a stock as it results in higher investments, particularly exchange-traded funds (ETFs). This has not been the case with the DVR. Since April 2016, while...25-05-2017
