HSBC Invest rates Tata Motors DVR as 'buy' at 44% discount

Karun Mutha of HSBC Invest Direct, in an exclusive interview with CNBC-TV18's Mitali Mukherjee and Sonia Shenoy, said Tata Motors differential voting right (DVR) discount range is expected to narrow down to at least 30-35% in the near-term.

"However, any arbitrage like going long in Tata Motors DVR and going short on Tata Motors futures stock will hardly enable investors to make money," he adds. Below is the verbatim transcript of Mutha's interview. Also watch the accompanying video. Q: What is causing the disconnection in the DVR space?
A: In Tata Motors, the differential voting right (DVR) problem persists as the discount has increased from approximately 30% to 44% at present. What are DVRs? They are different kind of voting right shares, which lack significant voting rights. In the case of Tata Motors