Shares of Tata Motors Ltd recorded a sharp uptick during the late deals on Thursday. The stock surged 6.27 per cent to hit an intraday high of Rs 1,142. It eventually settled 4.19 per cent higher at Rs 1,119.65 on BSE. At this price, the stock has gained 41.64 per cent on a year-to-date (YTD) basis.
Today's strong uptick in the share price came ahead suspension of DVR (differential voting right) shares at Friday's closing value. Tata Motors will cancel 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 shall be considered as the cost under Income Tax of New Ordinary Shares received by ‘A’ Ordinary Shareholders. In the present case, as the Effective Date is expected to be 1st September 2024 (Sunday) which is a non-trading day, the closing price as of August 30, 2024 shall be considered for this purpose. The same price is considered for the purpose of deemed dividend and capital gains calculation," Tata Motors stated.
"Period of holding of New Ordinary Shares received by “A” Ordinary Shareholders shall commence from the date of allotment of such New Ordinary Shares by the Company to the Trust i.e., from 1st September 2024," it added.
Technically, the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The stock's 14-day relative strength index (RSI) came at 61. A level below 30 is defined as oversold while a value above 70 is considered overbought.
As per BSE, the company's stock has a price-to-equity (P/E) ratio of 35.17 against a price-to-book (P/B) value of 11.85. Earnings per share (EPS) stood at 30.55 with a return on equity (RoE) of 33.69.
The counter saw high trading volume 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 came at Rs 154.23 crore, commanding a market capitalisation (m-cap) of Rs 3,72,245.39 crore.
For the unversed, DVR shares reduce the owner's voting rights but offer all other benefits. Tata Motors DVR shares also saw a decent spike by rising 3.75 per cent to hit their intraday high of Rs 774.25. Later, the scrip closed 2.53 per cent higher at Rs 765.15.