Mumbai: Tata Motors DVR shares gained up to 11% on Monday after promoter Tata Sons acquired more than 5 million shares ₹30 crore via the open market on Fridays.
At 2:15 p.m., the stock was trading 10.63% higher at ₹60.30, while the benchmark Sensex was stable at 38,388.12.
On Friday, Tata Sons bought 5.3 million shares, or 1.04% stake in Tata Motors DVR, from ₹56.02 each on the NSE via a wholesale transaction, according to exchange data. The names of the sellers were not immediately known.
DVR stands for Differential Voting Rights. Companies issue DVR shares to avoid hostile takeovers and dilution of voting rights. It also helps strategic investors who are looking for a large investment in a company, but with less voting rights. A Tata Motor DVR has 10% voting power over a common Tata Motor share.
As of June 30, Tata Sons held 5.26% stake in Tata Motors DVR, according to shareholder data.
Over the past month, Tata Motors DVR stock outperformed the broader market, jumping 47% from a 1% rise in the Sensex.
Tata Motors reported a consolidated loss of ₹8,443 crore for the April to June quarter of fiscal 21 compared to a loss of ₹3,679.66 crore in the same period last year. Operating revenue decreased 47.94% year-on-year to ₹31,983.06 crore in the first quarter of fiscal 21 compared to ₹61467 at T1 of FY20.
Tata Motors shares rose 1.90% to ₹150.55, after peaking at ₹152 on BSE in intraday trade.