Tata Motors DVR❓

I have recently come across this share in an economics times article, Tata Motors DVR share rose by over 3% on Tuesday. This got me thinking if the share is different from Tata Motors, upon research I found out that both are two different stocks listed on the exchange.

Tata Motors DVR, how is it different from #TATAMOTORS

DVR stands for differential voting rights and these shares are permitted to be issued with differential voting and differential dividend rights. In the case of Tata Motors DVR, they offer lower voting rights compared to normal shares (DVR shareholders have only 10% of voting rights as compared to ordinary shareholders). On the contrary, they are compensated with a higher dividend that Tata Motors shareholders (5% more).

Ex: If the board of directors approved an Rs.5 dividend to Tata Motors shareholders, DVR shareholders would get Rs. 5 + 5% of 2(FV) = Rs. 5.1.

Currently, there are over 50.8 crore DVR equity shares and over 332 crore ordinary equity shares issued by the company.

Also, have a look at how the share is performing in the market in the past 6 months:

Chartbusters - chart - 14683833