Tata Motors' DVR discount near two-year high

Despite Nifty inclusion, DVRs have underperformed ordinary shares

The price differential between ordinary shares of Tata Motors and the ones with differential voting rights (DVRs) is the highest in nearly two years.

On Wednesday, shares of the automobiles maker closed at Rs 469.5, about 41 per cent higher than the DVRs which quoted at Rs 276.2. Since their issuance in 2008, the DVRs have always traded at a discount to the ordinary shares; however, the premium has widened from 20 per cent last January. 

Investors have found the DVR ones unattractive despite the stock exchanges allowing these to be part of the indices. In April 2016, the National