InvestorQ : Why has Tata Sons been enhancing its holding in Tata Motors DVR?
Niti Shenoi made post

Why has Tata Sons been enhancing its holding in Tata Motors DVR?

Answer
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ishika Banerjee answered.
3 weeks ago


Tata Sons, the promoter of Tata Motors, during the week, purchased 53.20 lakh units of its Tata Motors DVRs worth Rs.30 crore via open market transactions. These DVRs are differential voting rights shares with lower voting rights in the company.

As on 30 June, Tata Sons held 5.26% in the Tata Motors DVR. Globally, companies issue DVR to thwart takeover attempts, especially the hostile types. DVR can raise capital on the same benefit terms but without diluting the voting rights of the company.

Shares of Tata Motors - DVR has traditionally lagged the stock of Tata Motors and was quoting at Rs. 56 on the BSE.