Tata Motors' promoters continue to sell stake in DVR issue

The Tata Motors differential voting rights (DVR) issue makes news again and this time its the promoters selling stake. Clearly for the last one-week or so the Tata Group has been a seller in the Tata Motors DVR, reports CNBC-TV18’s Nimesh Shah.

This entire DVR issue was under-subscribed and Tatas and JM Financial had to subscribe to all this DVR issue. Now Tata Steel last week sold close to 6% and again in yesterday’s trade Tata Sons sold 10 lakh shares and Tata Steel again sold 10 lakh shares and put altogether they have sold nearly 10% from the DVR. They don’t have a voting right but they have 5% more in terms of interest and that is the key reason for holding this DVR.

Interestingly, some of the large only funds and some large FIIs have bought this DVR giving thumbs up to the Tata Motors entire story of long-term growth and that is the reason we are seeing some bit of  selective buying by FIIs still in the auto pack be it Ashok Leyland or be Tata Motors DVR.