Shares of Tata Motors, Tata Motors DVR jump up to 6% in final trade today; here’s why

Tata Motors share price: The stock rose 6.27 percent to hit an intraday high of Rs 1,142. It ultimately closed at Rs 1,119.65, up 4.19 percent on the BSE. At this price, the stock is up 41.64 percent on a year-to-date (YTD) basis.
Shares of Tata Motors Limited registered a sharp rise in late deals on Thursday. The stock rose 6.27 per cent to an intraday high of Rs 1,142. It ultimately closed at Rs 1,119.65, up 4.19 per cent on the BSE. At this price, the stock is up 41.64 per cent on a year-to-date (YTD) basis.
Today’s strong rise in the share price came ahead of the suspension of DVR (Differential Voting Rights) shares at Friday’s closing price. Tata Motors will cancel the DVR shares listed since 2008 by issuing ordinary shares. The automaker will issue seven ordinary shares of Tata Motors for every 10 DVRs held by investors.
“The fair market value of the new ordinary shares as on 1st September 2024 will be treated as the cost under income tax of the new ordinary shares received by ‘A’ ordinary shareholders. In the present case, the effective date is expected to be 1st September 2024 (Sunday) which is a non-trading day, the closing price of 30th August 2024 will be considered for the purpose of calculating deemed dividend and capital gains.”
It said, the period of holding of new ordinary shares received by “A” ordinary shareholders will commence from the date of allotment of such new ordinary shares by the company to the trust, i.e. September 1, 2024.
Technically, the stock trades above the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMA).
The stock’s 14-day relative strength index (RSI) came in at 61. Levels below 30 are defined as oversold, while values ​​above 70 are considered overbought.
According to BSE, the price-to-equity (P/E) ratio of the company’s stock stands at 35.17, while the price-to-book (P/B) value stands at 11.85. Earnings per share (EPS) stood at 30.55 and return on equity (ROE) stood at 33.69.
Trading volume was seen high on BSE today as around 13.98 lakh shares changed hands. The figure was higher than the two-week average volume of 3.94 lakh shares. Turnover on the counter stood at Rs 154.23 crore, with market capitalization (m-cap) at Rs 3,72,245.39 crore.
For those unaware, DVR shares reduce the owner’s voting rights but provide all the other benefits. Shares of Tata Motors DVR also saw a rise of 3.75 per cent and hit its intraday high of Rs 774.25. Later the share closed 2.53 percent higher at Rs 765.15.