DVR shares of Tata Motors, Jain Irrigation spurt up to 17% on new BSE norms

NEW DELHI: Differential Voting Right Shares such as Tata Motors DVR, Jain Irrigation Systems DVR and Future Retail DVR rallied up to 17 per cent in trade on Thursday, after the premier stock exchange BSE announced new norms for considering differential voting rights shares in the indices, including Sensex and BSE 100.

According to BSE, DVR share class is eligible for inclusion in the BSE Sensex, S&P BSE 100, S&P BSE 200 and S&P BSE 500 indices if ordinary share class is part of the new index portfolio, PTI reported.

Reacting to the news, Tata Motors DVR surged as much as 9.5 per cent to hit its intraday high of Rs 384, Jain Irrigation Systems rose as much as 17.7 per cent to an intraday high of Rs 55.80 and Future Retail rallied 14 per cent to hit a high of Rs 62.35.

At 09:40 a.m.; Tata Motors DVR was trading 7.2 per cent higher at Rs 375.90. It hit a low of Rs 366.40 and a high of Rs 384 in trade today.

Jain Irrigation Systems was trading 14 per cent higher at Rs 54.05, and Future Retail DVR was up 9.8 per cent to Rs 60.

Differential Voting Right Shares are similar to common equity (ordinary) shares listed and traded on the stock exchange, except in respect of dividend and voting rights.

Companies generally compensate DVR investors with higher dividends. Further, DVR shares should have a minimum of 10 per cent shares outstanding of the company, added the PTI report.

"DVRs will be analysed independently for inclusion provided it meets inclusion criteria for the respective index," BSE said in a statement.