DVR shares of Tata Motors and Jain Irrigation ended with sharp gains of up to 6.6 per cent today after the BSE announced new norms for considering differential voting rights shares (DVRs) in the indices, including Sensex and BSE 100.
Tata Motors DVR soared 6.62 per cent to end at Rs 373.70 on the BSE. In intra-day session, it climbed 9.55 per cent to Rs 384.
Jain Irrigation Systems DVR closed 5.49 per cent higher at Rs 50 on the BSE. During the day, it jumped 17.72 per cent to Rs 55.80.
Differential Voting Right Shares (DVRs) 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.
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.
Further, DVR shares should have a minimum of 10 per cent shares outstanding of the company.
"DVRs will be analysed independently for inclusion provided it meets inclusion criteria for the respective index," BSE said in a statement yesterday.
